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Question:
(a) Distinguish between endogenous and exogenous variables in a simultaneous equation model?
b) Write down two equations which can be solved simultaneously, determine whether they are identified or over-identified and get the reduced form equations.
c) Can OLS be applied to the reduced form equations? Justify your answer.
d) Distinguish between a simultaneous model and a recursive model and show clearly that OLS can be applied to a recursive model.
Published salary surveys indicate that Chartered Financial Analyst earn $65,000 more per year than their non-chartered counterparts. Over 100,000 people are taking this three year
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a debit is used to record
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Problem : PART A (a) Analyse Keynes's model of liquidity preference. (b) Analyse the instruments central banks use to control the supply of money in the economy. PA
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