There appears to be growing interest in the development and estimation of simultaneous equation models for finance. Simkowitz and Jones [11] stimulated much of this concern in their observations on the need for these structures. Moreover, Simkowitz's application to the modeling of security returns with Logue [12] provides some support for these suggestions. Recently Lloyd [6] has argued that there may be significant problems in using two-stage least squares (hereafter 2SLS) with such models as a result of the potential for contemporaneous correlation in the structural errors across equations. The purpose of this note is to question several of Lloyd's conclusions and to provide some evidence that his findings may not be representative for the broad array of simultaneous models applicable to financial problems.

This paper develops a model for estimating the costs associated with the institutional and legal restrictions related to the states' abortion statutes. A travel-cost demand model is estimated with data for legal abortions obtained in New York State. The purpose is to determine the value--for women seeking abortions--of the 1973 Supreme Court ruling which liberalized abortion codes. The estimated benefits foregone in the absence of liberalization, over a 10-year period with a 10 percent discount rate, range from 12 million to 30 million in present value. It is important to note that this study makes no attempt to measure the losses to certain groups in society as a result of the liberalization.

This paper develops a model for estimating the costs associated with the institutional and legal restrictions related to the states' abortion statutes. A travel-cost demand model is estimated with data for legal abortions obtained in New York State. The purpose is to determine the value--for women seeking abortions--of the 1973 Supreme Court ruling which liberalized abortion codes. The estimated benefits foregone in the absence of liberalization, over a 10-year period with a 10 percent discount rate, range from 12 million to 30 million in present value. It is important to note that this study makes no attempt to measure the losses to certain groups in society as a result of the liberalization.

Charles J. Cicchetti, Anthony C. Fisher, V. Kerry Smith, An Econometric Evaluation of a Generalized Consumer Surplus Measure: The Mineral King Controversy, Econometrica, Vol. 44, No. 6 (Nov., 1976), pp. 1259-1276