The model:
UA= α0+α1UBt+α2(πA-πB)+ε
UB= β0+β1UAt+β2(πB-πA)+ε
The two equations are simultaneous. What is the correct step to run the regression simultaneous in eview7
Thx a lot!
What is the step to conduct simultaneous equattion in eview7
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Re: What is the step to conduct simultaneous equattion in ev
In general, you want the tsls command or to use a system.The model:
UA= α0+α1UBt+α2(πA-πB)+ε
UB= β0+β1UAt+β2(πB-πA)+ε
The two equations are simultaneous. What is the correct step to run the regression simultaneous in eview7
Thx a lot!
However, the equations as posted are not identified and cannot be consistently estimated. Nothing to do with software.
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