1. (a) Consider a two equation model: y, = Oz, + un y, = Biz, + B,x, + U2 ; t= 1,2,. .., T where y, and z, are endogenous variables, x, is an exogenous variable, up, and u2, are serially uncorrelated disturbances with zero means, variances o, and o, and covariance o,, for all t. Write down the reduced form corresponding to y and z. Suggest a method of estimation of the reduced form parameters, which will give unbiased and consistent estimators.1. (a) Consider a two equation model: y, = Oz, + un y, = Biz, + B,x, + U2 ; t= 1,2,. .., T where y, and z, are endogenous variables, x, is an exogenous variable, up, and u2, are serially uncorrelated disturbances with zero means, variances o, and o, and covariance o,, for all t. Write down the reduced form corresponding to y and z. Suggest a method of estimation of the reduced form parameters, which will give unbiased and consistent estimators