Consider the model below: E-Bo+BY+B₂Ar+811 At = 80 +81E + £21 I Where E₁, Y, and A denote the level of government expenditure, income and foreign aid, respectively in year t.
Consider the model below: E-Bo+BY+B₂Ar+811 At = 80 +81E + £21 I Where E₁, Y, and A denote the level of government expenditure, income and foreign aid, respectively in year t.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
i) Identify the endogenous variables and predetermined variables
ii) Derive the reduced form of equations
iii) Check the identification status of each of the two equations
iv) Describe how to estimate the expenditure equation by 2SLS.
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