Refer to Exercise 19.6. The estimated reduced-form equations are as follows: Y 1t = 4 + 3X

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Refer to Exercise 19.6. The estimated reduced-form equations are as follows:

Y_1t = 4 + 3X_1t + 8X_2t

Y_2t = 2 + 6X_1t + 10X_2t

a. Obtain the values of the structural parameters.

b. How would you test the null hypothesis that γ₁₁ = 0?

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: May 29, 2018 03:56 AM

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Refer to Exercise 19.6. The estimated reduced-form equations are as follows: Y 1t = 4 + 3X

Question:

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a Following the system 19212 and 19222 it can be shown that b To test this ...View the full answer

Basic Econometrics

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