Argumentation on why simultaneous equation approach is not used in Neo-Confucian causal cycle analyses of business operations

Authors: Kuo-Hsiung Lin

Journal: Chia Da Management Review. Jun. 2007, 27(1): 247-287.

Keywords: Neo-Confucian Causal Cycle Analyses; Simultaneous Equation Approach; Ordinal Major Causes

Abstract:
The author tries to reflect and react to the following two issues: 1. Why the specification and regression of simultaneous equation approach were not used to calculate the regression coefficient and regression constant of each behavioral equation in Neo-Confucian causal cycle analyses of business operations? 2. Why the structural form and reduced form in simultaneous equation approach do not exist in these causal cycle analyses in business operations? In this paper, he has done deep and sufficient argumentation on the ordinal major causes of these one-way causal cycles.