Nonrecursive Causal Models

Where an assumption of unidirectionality in causal effects is unrealistic recursive models cannot be used and more complex nonrecursive models are necessary. Unfortunately many nonrecursive models (unlike recursive models) are unidentified which makes meaningful parameter estimation impossible. Even when they are identified it would be inappropriate to use OLS regression techniques (appropriate for recursive models) for the purpose of estimation. The concept of identification and the factors that lead to it are explained; and various tests for determination are provided. Illustrations from a variety of social science disciplines are used throughout the book.