H3. 2.Consider a two equation model9, Bp, +B₂y, +u,=9₁ = ap, + e,t=1,2,., T. T is the sample size.where q, and p, are endogenous variables, y, is an exogenous variable, u, and e, are seriallyuncorrelated disturbances with zero means, with respective variances of and o2 and covariancefor all t.0 12(a) Examine the identifiability of the above given equations.(b) Examine the consistency of the ordinary least squares estimator of a.(c) Derive the two stage least squares estimator of a.(d) Without derivation, explain what would be the indirect least squares estimator of a.

In this problem, we are dealing with a two-equation model that involves endogenous variables ( and )…

Answered: 2. Consider a two equation model 9,…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter1: Functions

Section1.2: The Least Square Line

Problem 1E

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