Consider the structural system of equations where the where Y variables are endogenous, and the X variables are exogenou

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Consider the structural system of equations where the where Y variables are endogenous, and the X variables are exogenou

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Consider The Structural System Of Equations Where The Where Y Variables Are Endogenous And The X Variables Are Exogenou 1
Consider The Structural System Of Equations Where The Where Y Variables Are Endogenous And The X Variables Are Exogenou 1 (55.73 KiB) Viewed 29 times
Consider the structural system of equations where the where Y variables are endogenous, and the X variables are exogenous. The errors may be correlated contemporaneously between equations but not over time either within or between equations. The errors have a mean of o but different variances. Y₁t B11 + B12 Y2t + B13Y3t + B14X₁t + B15X2t + €1t = Y₁t B21 + B22Y3t+ B23X1t + €2t = Yıt 831 +32Y1t + €3t = where you can rewrite the structural equations as: Yit B12Y2t B13Y3t = B11 + B14X1t + B15X2t + €1t Y₁t B22Y3t B21 + B23X₁t + €2t - = Y3t B32Y1t B31 + €3t = Question: please explain if each equation is over-identified, under-identified or exactly identified, and which OLS equations can be consistently estimated?
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