Suppose we propose yet another definition of the order condition of identifiability: K m + k

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Suppose we propose yet another definition of the order condition of identifiability:

K ≥ m + k − 1

which states that the number of predetermined variables in the system can be no less than the number of unknown coefficients in the equation to be identified. Show that this definition is equivalent to the two other definitions of the order condition given in the text.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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