Word Count : 308

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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 and Exogenous Variables - Endogenous variables: \( Y_1, Y_2 \) - Exogenous variables: \( Z_1, Z_2 \) - Error terms: \( u_1, u_2 \) ### Step ___ ____ ______ ______ ___ ____ ____ ___ _____ ________ _____.
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