UGC NET
   Top Resources
profile-img
Parminder posted an Question
March 18, 2020 • 17:19 pm 30 points
  • UGC NET
  • Economics

Non-recursive model of simultaneous equation model

non-recursive model of simultaneous equation model explain it nd related mcqs example.

2 Answer(s) Answer Now
  • 0 Likes
  • 3 Comments
  • 0 Shares
  • comment-profile-img>
    Tanveer ahmad khan Best Answer

    go through this, you have to remember the terminology

    Chapter17-Econometrics-SimultaneousEquationsModels.pdf
  • comment-profile-img>
    Tanveer ahmad khan best-answer

    Non-recursive model of simultaneous equation is one in which the direction of causality is unknown. as a result we can't separate the variables into dependent and independent categories as we don't know which way the causality runs as we know in single equation models. Here we define variables as endogenous and exogenous variables in which endogenous varaiblez are those which have feedback effects on each other i.e one is determining the other. And exogenous variables are predetermined variables. here this system of equations can't be explained through OLS as it results in simultanuity bias and estimates are not consistent and are biased. Here we are various other methods for estimation like 2stage LS estimates, IV method etc. And one important issue here is the identification problem. Before estimation we need to make sure our system of equations is identifiable or not

    eduncle-logo-app

    help me I'm completely confused what should I do or not. please if u provide me some notes or pdf material soo plz...

    eduncle-logo-app

    i will try to find , don't worry

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers

Sign Up to Download FREE Study Material Worth Rs. 500/-