Estimation of Simultaneous System of Equations
Posted: Mon Nov 09, 2015 9:46 am
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
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