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

Find out current stock price and the riskfree rate, Currently the stock of ...

Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy

Regression, You have collected data for 104 countries to address the diffic...

You have collected data for 104 countries to address the difficult questions of the determinants for differences in the standard of living among the countries of the world. You rec

Multicollinearity, if there is multicollinearity so why we can not estimate...

if there is multicollinearity so why we can not estimate the value of parameters?

Calculate minimal expected amount, A store is known for is bargains. The st...

A store is known for is bargains. The store has the habit of lowering the price of its bargains each day, to ensure that articles are sold fast. Assume that you spot an item on Wed

Agrilculture based project, visit to a village panchayat for agrilculture b...

visit to a village panchayat for agrilculture based project

Break-even, how to calculate equilibrium quantity and price

how to calculate equilibrium quantity and price

What do you understand by simultaneity bias, (a) What is a white noise pro...

(a) What is a white noise process? (b) Distinguish between exogenous and endogenous variables, using examples. (c) What do you understand by simultaneity bias and can OLS

Coursework, Following the general methodology used by econometricians as ex...

Following the general methodology used by econometricians as explained in the session for week 1 (eight steps), explain how you would proceed to determine if a good complies with t

Equation prove, prove that summation k =0 and summation kxi=1

prove that summation k =0 and summation kxi=1

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

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