Identification of linear stochastic models with covariance restrictions (Q1077122)

The purpose of this paper is to provide a systematic treatment of the problem of identification in systems of linear structural equations where some of the disturbances are uncorrelated. The authors analyse the conditions under which covariance restrictions give rise to linear restrictions on structural parameters and they explore the concept of recursively decomposable restrictions. Their work generalizes results of \textit{L. L. Wegge} [Aust. J. Stat. 7, 67-77 (1965; Zbl 0152.372)] and \textit{J. A. Hausman} and \textit{W. E. Taylor} [Econometrica 51, 1527-1549 (1983; Zbl 0517.62107)].