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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.
I need to conduct bivariate tests using two regime threshold cointegration for nonlinear relations. I have the code but it will nee some modification. Is there someone can help?
What is the relationship between overpopulation and unemployment in a country?
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