Question
In the following two-equation system check the identification status of hoth the equations.
Answer :
Word Count : 308
To check the identification status of the equations in the system: \[ Y_1 = \alpha_1 + \alpha_2 Y_2 + u_1 \] \[ Y_2 = \beta_1 + \beta_2 Y_1 + \beta_3 Z_1 + \beta_4 Z_2 + u_2 \] we use order condition and rank condition for identification. ### Step 1: Identifying Endogenous ______ ______ ______ _____ ___ ______ _________ ____ _______ _____ _________ __________.
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To check the identification status of the equations in the system: \[ Y_1 = \alpha_1 + \alpha_2 Y_2 + u_1 \] \[ Y_2 = \beta_1 + \beta_2 Y_1 + \beta_3 Z_1 + \beta_4 Z_2 + u_2 \] we use order condition and rank condition for identification. ### Step 1: Identifying Endogenous ______ ______ ______ _____ ___ ______ _________ ____ _______ _____ _________ __________.
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