Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Econometrics Expert

problem 1: What is simultaneous biases? Discuss the cause of ednoginity in the regression analysis.

problem 2: Describely precisely what is meant by ‘the identification problem’ in the context of linear simultaneous equation model.

problem 3:

a) Consider the identifiability of each of the equations in the given model (use rank and order conditions):

66_rank conditions.jpg

where: C(consumption), I(investment), T (taxation), Y(income) are endogenous variables; G(government expenditure) is exogenous; U, V and W are random disturbance terms.

b) What problems occur in the interpretation of the coefficient estimates of equations which are not identified?

c) Why do simultaneous equations violate the classical supposition of independence among the error term and the explanatory variables?

d) What occurs if OLS is employed to estimate the coefficients of the simultaneous system?

e) What is Two-Stage Least Squares? What are the main properties of the Two-Stage Least Squares?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9979

Have any Question? 


Related Questions in Econometrics

1 the consumer price index is 125 in year 1 and 160 in year

1. The consumer price index is 125 in year 1 and 160 in year 2. All inflation is anticipated. If the Commerce Bank of Beverly Hills charges an interest rate of 35 percent in year 2, what is the bank's real interest rate? ...

Country x produces 800 units of bananas and 400 units of

Country X produces 800 units of bananas and 400 units of steel when it divides its economic resources equally between these two types of products. Country Y produces 400 units of bananas and 400 units of steel under the ...

Explain why the number of elephants and rhinos is declining

Explain why the number of elephants and rhinos is declining in nations where the animals are housed on national parks and rising in nations where the animals are privately owned and farmed by individuals.

Illustrate the logic of the endowment effect using a kinked

Illustrate the logic of the endowment effect using a kinked indifference curve. Let the angle be greater than 90°. Suppose that the prices change, so the slope of the budget line through the endowment changes. Use the di ...

Explain why the european central bank cannot selectively

Explain why the European Central Bank cannot selectively change interest rates in any of the 16 EU countries that have adopted the euro-for example, lowering the interest rate to stimulate the economies of Greece, Irelan ...

In the late 1800s wildcat banks which were easy to charter

In the late 1800s "wildcat banks," which were easy to charter and largely unregulated, sprang up across the American West. Some new banks chose to operate out of simple and inexpensive wooden structures, but others built ...

The predicted sharp rise in consumer spending is attributed

The predicted sharp rise in consumer spending is attributed by economists to lower planned savings. In the last few weeks interest rates have fallen and consumer confidence to borrow and spend has risen. Using a consumpt ...

Peacocks with their fabulous tails live wild in the jungle

Peacocks, with their fabulous tails, live wild in the jungle. There, a tail is a detriment?-?it slows the birds in flight, and presents an excellent handle for a predator to grab hold of. Nevertheless, males continue to ...

Ethnicity research paper middot summarize the

Ethnicity Research Paper · Summarize the pertinent historical, political, social, economic and cultural factors related to your chosen aspect of diversity. · Consider and summarize any relevant developmental theory model ...

1 what is the unemployment rate in your state today what

1. What is the unemployment rate in your state today? What was it in 1970, 1975, 1982, and 2008? How has your state done relative to the national average? Do you know or can you determine why? 2. Suppose all wages, salar ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen