Estimation of Simultaneous System of Equations

[szengaiyu]

Suppose i have two equations and i want to run them simultaneously.

1) UA= α0+α1UBt+α2(πA-πB)+ε
2) UB= β0+β1UAt+β2(πA-πB)+ε

The identified model:
UA= γ0+γ1(πA-πB)+γ2RB+U which RB is used to identify the equation 1
UB= μ0+1μ(πA-πB)+μ2RA+ω which RA is used to identify the equation 2

How to run the simultaneous equation in eviews 7?

Thx a lot

[startz]

Suppose i have two equations and i want to run them simultaneously.

1) UA= α0+α1UBt+α2(πA-πB)+ε
2) UB= β0+β1UAt+β2(πA-πB)+ε

The identified model:
UA= γ0+γ1(πA-πB)+γ2RB+U which RB is used to identify the equation 1
UB= μ0+1μ(πA-πB)+μ2RA+ω which RA is used to identify the equation 2

How to run the simultaneous equation in eviews 7?

Thx a lot

You need to re-read in your text book the material about simultaneous equations estimation--that's not quite how identification works. Once you've done that, you can either use EViews' TSLS command or EViews' System.