Question: #5. Consider the following simultaneous equations model. Assume that x is exogenous. y1 = Bx te V2 = ay1 + u (i) How would you

 #5. Consider the following simultaneous equations model. Assume that x is

#5. Consider the following simultaneous equations model. Assume that x is exogenous. y1 = Bx te V2 = ay1 + u (i) How would you estimate the parameter B? Is it identified? (ii) How would you estimate the parameter a? Is it identified

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!