Economics · Econometrics
A simultaneous equation model is said to be over-identified if:
- 1Unique numerical values of the structural parameters can be obtained.
- 2More than one numerical value can be obtained for some of the parameters of the structural equations.✓
- 3A unique solution for all the structural coefficients is not possible because of lack of information.
- 4None of the structural parameters can be estimated using reduced-form coefficients.
Correct answer
More than one numerical value can be obtained for some of the parameters of the structural equations.
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