What is meant by indirect least squares (ILS) method? Explain how the following model can be estimated using this method?

Demand function:

The indirect least squares (ILS) method is a statistical method used to estimate the parameters of a simultaneous equation system. The ILS method is a two-stage least squares (2SLS) estimator, which is used to address the endogeneity problem that arises in a simultaneous equation system. The endogeneity problem refers to the difficulty of determining the causal relationships between the variables in the system due to the correlation between the variables.

The ILS method works by first instrumenting the endogenous variables in the system, which are the variables that are influenced by the other variables in the system. The instruments are variables that are correlated with the endogenous variables but uncorrelated with the residuals or errors in the system. By instrumenting the endogenous variables, it is possible to obtain an estimate of the parameters ______ _____ __________ ___ __________ _________ _______ _____.
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