Under Identification and Over Identification

Question

13 Jul 2023

Answer :

Word Count : 296

Identification is a crucial concept in econometrics that refers to the ability to estimate the parameters of a model uniquely from the available data. When a model is identified, it means that the model's parameters can be estimated without ambiguity. However, when a model is not identified, it means that the model's parameters cannot be estimated uniquely from the data, and additional information is needed.

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