Consider the system of equations: pi = β0 + β0qi + β2ti + β3zi + ui qi = α0 + α1pi + α2ki + ԑi where p and q are endogenous variables. t, z and k are exogenous variables. u and ԑ are disturbance terms. And i is cross section. Explain how you would go about estimating the stated system of equations.

Consider the system of equations: pi = β0 + β0qi + β2ti + β3zi + ui qi = α0 + α1pi + α2ki + ԑi where p and q are endogenous variables. t, z and k are exogenous variables. u and ԑ are disturbance terms. And i is cross section. Explain how you would go about estimating the stated system of equations.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.7P

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