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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.
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list of those and their functions source of fund and how the sources are lend out?
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The expected return and risk involved in making an investment are important factors considered by investors. The expected return of a business can be influenced
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