rank and order conditions - SPUR ECONOMICS

Econometrics / Simultaneous Equation Models

Indirect Least Squares Estimation

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…

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January 18, 2023

Econometrics / Simultaneous Equation Models

Identification: Rank and Order Conditions

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…

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January 16, 2023

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