Seemingly unrelated regressions with two-way error component disturbances. Using the two-way error component structure on the disturbances
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Seemingly unrelated regressions with two-way error component disturbances. Using the two-way error component structure on the disturbances of the \(j\) th equation given in (6.9) and (6.10), verify that \(\Omega_{j l}\), the variance-covariance matrix between the \(j\) th and \(l\) th equation disturbances, is given by (6.11).
Transcribed Image Text:
uj = Zulj + Zx Aj + vj (j=1,..., M) (6.9)
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