Consistent Estimation When the Left-Hand Variable is Exogenous over Part of the Sample Period.

This paper proposes a consistent estimation method for regression equations with a left-hand variable that is endogenous for some observations, and exogenous for others. This method is applied to the estimation of a demand-for-money function for Switzerland over a time interval which includes periods of monetary control; that is periods when the quantity of money can best be viewed as exogenous. Copyright 1989 by John Wiley & Sons, Ltd.