Sur l’estimation des équations de CANDIDE-R The estimation of CANDIDE-R

Abstract

CANDIDE-R is a huge simultaneous macro-economic model which raises estimations difficulties. We avoid the problem of identification assuming that the great number of variables in our model makes it impossible that the necessary condition be not satisfied. We assume that our system converges to a solution solving this way the problem of identification. The core of the paper gives justifications of the procedure we adopted to estimate CANDIDE-R. Because of the presence of regional equations and the limited amount of regional data, we are bound to pool cross sections and time series data. We then justified the use of Zellner's approach instead of the error components models within the class of regional models built on national premises.