Consider the following simultaneous equation model: YB10 + B12Y21+X + U Y21 = B20 + B21...

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Consider the following simultaneous equation model: Y₁B10 + B12Y21+α₁X₁ + U₁ Y21 = B20 + B21 Y₁1 +022X21 + U21 (a) Obtain the reduced-form equations for this model. (b) What is the relationship between the reduced-form coefficients from (a) above, and the structural coefficients? (c) Given that the estimated reduced-form equations are as follows (error terms are now omitted): Y₁ = 4 + 3X₁ + 8X21 Page 49 of 82 This document is available free of charge on StuDocu.com Downloaded by Chris Mutua (bryanmutua999@gmail.com) Y2=2+ 6X₁ + 10X21 Obtain the values of the structural parameters (coefficients) Consider the following simultaneous equation model: Y₁B10 + B12Y21+α₁X₁ + U₁ Y21 = B20 + B21 Y₁1 +022X21 + U21 (a) Obtain the reduced-form equations for this model. (b) What is the relationship between the reduced-form coefficients from (a) above, and the structural coefficients? (c) Given that the estimated reduced-form equations are as follows (error terms are now omitted): Y₁ = 4 + 3X₁ + 8X21 Page 49 of 82 This document is available free of charge on StuDocu.com Downloaded by Chris Mutua (bryanmutua999@gmail.com) Y2=2+ 6X₁ + 10X21 Obtain the values of the structural parameters (coefficients)

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