Refer to Exercise 19.6. The estimated reduced-form equations are as follows: Y 1t = 4 + 3X
Question:
Refer to Exercise 19.6. The estimated reduced-form equations are as follows:
Y1t = 4 + 3X1t + 8X2t
Y2t = 2 + 6X1t + 10X2t
a. Obtain the values of the structural parameters.
b. How would you test the null hypothesis that γ11 = 0?
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a Following the system 19212 and 19222 it can be shown that b To test this ...View the full answer
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