From the model the following reduced-form equations are obtained: a. Are the structural equations identified? b. What
Question:
the following reduced-form equations are obtained:
a. Are the structural equations identified?
b. What happens to identification if it is known a priori that γ11 = 0?
Transcribed Image Text:
Y1 = B10 + B12 Y2ı + Y11X1 +u11 Yu = B20 + B21 Y1u + Y22X21 + u21 Yu = l10 + M11X11 + 112X21 + W; Y2 = l20 + I121X1, + 12„X2, + v;
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