Recent development of covariance structure analysis in economics

A survey on the recent development of covariance structure analysis (CSA) in economics is provided. First, estimation, inference, specification tests, and the treatment of missing values are discussed for a general CSA model. Subsequently, to demonstrate the applications of CSA in economics, statistical analyses of income dynamics and panel regression models with endogeneity are examined. Finally, some future research directions are discussed.(c) 2021 The Author(s). Published by Elsevier B.V. on behalf of EcoSta Econometrics and Statistics. This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ )