The relationship between corruption and the shadow economy is not clear. Theoretically, they either substitute or complement each other -exhibiting either a negative or positive relationship. This paper -using a structural equation model with two latent variables - extracts information on...

This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak's Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key...

This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak's Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key...

This paper considers finite mixtures of structural equation models with nonlinear effects of exogenous latent variables and nonrecursive relations among endogenous latent variables. A Bayesian approach is developed to analyze this kind of models. In order to cope with the label switching...

We use structural equation modelling in order to regress two factors describing cognitive abilities and a number of observable exogenous variables on the grade performance of students in economics courses at four half-year intervals. We apply a bootstrapping procedure in order to analyze the...