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iChanging the ordering of the variables does not have a significant impact on the results.
A solution is to use the Generalised IRFs as these are not sensitive to the ordering of the variables, and are therefore used in this study.
A major issue with using the recursive structure for identifying the shocks is that the IRFs become sensitive to the ordering of the variables within the VAR system if the error terms are highly correlated.
These parameters are not affected by the ordering of the variables.
Our simulation study demonstrates that as a consequence of this violation order effects can occur; that is, systematic differences depending upon the ordering of the variables in the chained equations algorithm.
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Note that reversing the order of the variables leads to a more intractable computation since ϕ 2 ( 1 / d, 1 / d, d ) is not of the form covered by Theorem 11.
For a k times differentiable function f the divided differences (mathfrak {D}^k f) of order k are defined inductively as follows: begin{aligned} mathfrak {D}^0fmathop limits ^{mathrm {def}}f; end{aligned}if (kge 1), then Open image in new window (the definition does not depend on the order of the variables).
Indeed, Whitehead and Russell specified this convention for relations in extension (on p. 200 in the introductory material of *21, in terms of the order of the variables), but the ambiguity it brought out most clearly by using λ notation: the first denotes the relation of being an x and y such that φxy and the second denotes the converse relation of being a y and x such that φxy.
The order of the variables listed reflects their discriminating value in the model.
Once the orders of the variables are known, the rapid variables can be identified and the system reduced to a simpler one.
Since in the case of modeling multiple informants the order of entry of the variables into the model is insubstantial, a correlated factors solution was employed to secure that the order of the variables would not affect the estimates (Neale et al. 2006; Rijsdijk 2011).
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