Economics · Econometrics - Order Condition
For an EXACTLY identified equation in a simultaneous equations model, the order condition that must be fulfilled is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Number of included exogenous variables = Number of endogenous variables
- 2Number of excluded variables < Number of included endogenous variables - 1
- 3Number of excluded variables > Number of included endogenous variables - 1
- 4Number of excluded variables = Number of included endogenous variables - 1✓
Correct answer
Number of excluded variables = Number of included endogenous variables - 1
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