What is meant by the identification problem, Microeconomics

Assignment Help:

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

2. Explains concisely what is meant by ' the identification problem'' in the context of liner simultaneous equation model.

3. 

1678_What is meant by the identification problem.png

4. i) Consider the identifiability of each of the equations in the following model

(use rank and order conditions):

2127_What is meant by the identification problem2.png

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.

ii) What problems arise in the interpretation of the coefficient estimates of equations that are not identified?

(iii) Why do simultaneous equations violate the classical assumption of independence between the error term and the explanatory variables?

(iv)  What happens if OLS is used to estimate the coefficients of a simultaneous system?

(vii) What is Two-Stage Least Squares? What are the properties of Two-Stage Least Squares?


Related Discussions:- What is meant by the identification problem

Educational financing, Normal 0 false false false EN-IN...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Chapter 6, (a) Suppose Scientists discover that eating soybeans prevents ca...

(a) Suppose Scientists discover that eating soybeans prevents cancer and heart disease.

5 theories of microeconomics, evaluate each in term of strength and weaknes...

evaluate each in term of strength and weakness relative to their applicability to asian economy situation or reality ,2. philippines economy situation or reality

What are price ceilings and price floors, 1. Explain what are price ceiling...

1. Explain what are price ceilings and price floors and how they effect the market for a good or service. Also show through graphs, if they cause any inefficiencies in a perfectly

What do you meant by hoarding, Q. What do you meant by Hoarding? A situ...

Q. What do you meant by Hoarding? A situation in that companies, financial investorsor individual consumers choose to hold hoards of cash or other liquid assets, instead of spe

Explain supply of the commodity, The law of supply is that producers will s...

The law of supply is that producers will supply more the higher the price of the commodity.  The supply curve is an upward sloping function showing a direct relationship among pric

Supply of basic industrial inputs, Supply of Basic Industrial Inputs: ...

Supply of Basic Industrial Inputs: Allowing their duty-free imports by exporters would require an elaborate machinery of customs and import licensing to ensure that the impor

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd