the SVAR with an auxiliary statistical model for the external instruments which is a system of reduced form equations. The … SVAR and the auxiliary model for the external instruments jointly form a "larger" SVAR characterized by a particularly … subset of the structural shocks is of interest. Overidentified SVARs with external instruments can be easily tested in our …

Motivated by the increasing use of external instruments to identify structural vector autoregressions (SVARs), we … can be used to relax the additional exclusion restrictions unrelated to the external instruments often imposed to …