Economics · Econometrics
In a simultaneous equation model, the reduced form equations:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1must contain only exogenous variables and no error terms
- 2must not contain lagged values of endogenous variables
- 3do contain current values of endogenous variables as explanatory variables
- 4do not contain current values of endogenous variables as explanatory variables✓
Correct answer
do not contain current values of endogenous variables as explanatory variables
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