simultaneous equation bias

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

Econometrics / Simultaneous Equation Models

Simultaneous Equation Bias

The OLS and other single equation models assume that variables treated as independent variables are exogenous. This implies a one-way relationship between independent and dependent variables. It is assumed that…

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January 11, 2023

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