Q. Suppose re are 300 of young in some period t. n, how many good are paid to government for tax in this period? In period t, how many good can each old person get and consume?
Q. Explain how assumptions needed for Gauss-Markov theorem to apply are changed when re is a stochastic regress or.
Consider following simultaneous equations model.
(a) How would you estimate parameter? Is it identified?
(b) How would you estimate parameter? Is it identified?