Multiple Choice
Refer to the simultaneous equations model above. The reduced form error from the reduced form equation for K2 will be a:
A) quadratic function of u1 and u2, and correlated with z1 and z2.
B) quadratic function of u1 and u2, and uncorrelated with z1 and z2.
C) linear function of u1 and u2, and correlated with z1 and z2.
D) linear function of u1 and u2, and uncorrelated with z1 and z2.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: The following simultaneous equations describe the demand
Q12: OLS is biased and inconsistent when applied
Q13: The following equations represent a two-equation model:
Q14: An alternative to using simultaneous equation models
Q15: Which of the following equations is an
Q17: If a structured model contains a time
Q18: Which of the following is a method
Q19: Exclusion restrictions are said to be imposed
Q20: Which of the following correctly highlights a
Q21: The first step in estimating simultaneous equations