000011554 001__ 11554 000011554 005__ 20250117080227.0 000011554 022__ $$a0165-1889 000011554 0247_ $$2DOI$$a10.1016/j.jedc.2022.104546 000011554 037__ $$aARTICLE 000011554 039_9 $$a2025-01-17 08:02:27$$b1000016$$c2024-03-15 09:37:57$$d0$$c2023-09-05 15:27:31$$d1$$c2023-06-06 10:13:48$$d1001252$$c2023-01-06 15:25:14$$d0$$c2023-01-06 11:08:37$$d1000063$$c2023-01-06 11:06:14$$d1000063$$c2023-01-06 10:56:25$$d1000063$$c2022-12-19 15:06:23$$d0$$y2022-12-19 15:06:15$$z1000016 000011554 041__ $$aeng 000011554 245__ $$aSmooth transition simultaneous equation models 000011554 269__ $$a2022-10 000011554 300__ $$a26 p. 000011554 506__ $$avisible 000011554 520__ $$9eng$$aThis paper proposes a generalization of the nonlinear simultaneous equation model of Pesaran and Pick (2007) by modelling the comovement between the two endogenous variables as a smooth function of the magnitude of the endogenous variable rather than a step function. The threshold and the speed at which a shock is transmitted are estimated with the other parameters of the model. We investigate the properties of an accurate estimation method which takes into account endogeneity, and a testing procedure for simultaneity in the presence of nuisance parameters under the null hypothesis. We study the conditions on the parameters that ensure the uniqueness of the implicit reduced form of the model. We apply this methodology to the comovement between the sovereign and banking sectors of nine developed countries. 000011554 540__ $$acorrect 000011554 592__ $$aHEG - Genève 000011554 592__ $$bCRAG - Centre de Recherche Appliquée en Gestion 000011554 592__ $$cEconomie et Services 000011554 65017 $$aEconomie/gestion 000011554 6531_ $$9eng$$aimplicit reduced form 000011554 6531_ $$9eng$$amarket comovement 000011554 6531_ $$9eng$$aNL2SLS estimation method 000011554 6531_ $$9eng$$anuisance parameters 000011554 6531_ $$9eng$$asimulations 000011554 6531_ $$9eng$$asimultaneity testing 000011554 655__ $$ascientifique 000011554 700__ $$aKadilli, Anjeza$$uHaute école de gestion de Genève, HES-SO Haute Ecole Spécialisée de Suisse Occidentale 000011554 700__ $$aKrishnakumar, Jaya$$uGeneva School of Economics and Management, University of Geneva, Switzerland 000011554 773__ $$jDecember 2022, Vol. 145, article no 104546$$tJournal of economic dynamics and control 000011554 8564_ $$yPublished version$$9a6bf4b9b-86f3-41b2-88d2-a3acc3dfaaf4$$s2986855$$uhttps://arodes.hes-so.ch/record/11554/files/Kadili_2022_Smooth_transition_simultaneous_equation_models.pdf 000011554 906__ $$aGOLD 000011554 909CO $$ooai:hesso.tind.io:11554$$pECONOMIESERVICES_ALL$$pGLOBAL_SET$$pHEG_GE_ARTICLES_SCIENTIFIQUES$$qHEG_GE_ARTICLES_SCIENTIFIQUES_ECO 000011554 950__ $$aI2 000011554 980__ $$ascientifique 000011554 981__ $$ascientifique