Explain structural model and a recursive model, Econometrics

Assignment Help:

Problem:

a) Using a financial or economics theory, determine a simultaneous structural model and a recursive model, explaining each variable used in the models.

b) Using your above formulated simultaneous structural model, obtain the reduced form equations and deduce whether the equations are over/under or just-identified.

c) Based on your results from part (b), explain which methodology(ies) can be used to estimate the reduced form equations and why.

d) Explain in details which test can be used to test for the exogeneity of a variable. Answers must be supported by an example.


Related Discussions:- Explain structural model and a recursive model

Example of random variable, Let W be a random variable such that Supp (W) =...

Let W be a random variable such that Supp (W) = {2, -1, 0, 1, 2 } and What is p? Define U = W 2 . What is Supp (U) and fU (u) = Pr [U = u] for u ∈ Supp (U)? Compute E [W] a

National park , A chance sample of visitors to a National Park was intervie...

A chance sample of visitors to a National Park was interviewed regarding their impressions of the Park.  Of 200 interviewees, 120 said that they would probably make a return visit

Heteroscedasticity, How to calculate the presence of Heteroscedasticity usi...

How to calculate the presence of Heteroscedasticity using the Goldfeld-Quandt test

find the weighted average cost of capital , PrivateJets (PJ) is considerin...

PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity

Ethical problem in dependent variable, The attached Eviews results are for ...

The attached Eviews results are for a model who has a professional career (dependent variable = pro (1 if respondent has a professional career, 0 otherwise). The data is the 1979 c

Using R to generate results, I have a few econometric that require the use ...

I have a few econometric that require the use of R to generate the answer

Dummy Variable, Define Dummy Variable and write its importance in Regressio...

Define Dummy Variable and write its importance in Regression model.

Time series, energy consumption and economic growth

energy consumption and economic growth

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