Consider a simultaneous equation model Y = ao + aX + aZ + u X =...
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Consider a simultaneous equation model Y = ao + a₁X + a₂Z + u₁ X = bo + b₁Y+ b₂Z + b₂W + U2, where Z and W are exogenous variables. Then: a. the first equation is identified when b₂ #0 or b₂ # 0. b. the second equation is identified provided that a, # 0. 927 O c. the first equation is identified provided that b₂ # 0. O d. when b=0, the two equations are both identified. Consider a simultaneous equation model Y = ao + a₁X + a₂Z + u₁ X = bo + b₁Y+ b₂Z + b₂W + U2, where Z and W are exogenous variables. Then: a. the first equation is identified when b₂ #0 or b₂ # 0. b. the second equation is identified provided that a, # 0. 927 O c. the first equation is identified provided that b₂ # 0. O d. when b=0, the two equations are both identified.
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Answer b the second equation is identified provided ... View the full answer
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