The Three-Stage Least Squares or 3SLS is applied to simultaneous equation models. It is different from single equation methods like Indirect Least Squares (ILS) and 2SLS because it is applied…
The Indirect Least Squares (ILS) is a method used to estimate simultaneous equation models that are exactly identified. It is a single equation method because it is applied to each…
A simultaneous equation model is said to be identified if we can obtain unique estimates of the coefficients in the model. The equations in identified models have a unique structure…
