Question 1

The following equations represent a simultaneous equations model: K1 = 1 =   1K2 +   1z1 + u1 K2 =   2K1+   2z2 + u2 The reduced form equation for K2 will express: A) K1 as a function of K2 and the error terms. B) K2 as a function of K1and the error terms. C) K2 as a function of exogenous variables and the error terms. D) K1 as a function of exogenous variables, the error terms, and K2." class="answers-bank-image d-inline" rel="preload" > 1K2 + 1 =   1K2 +   1z1 + u1 K2 =   2K1+   2z2 + u2 The reduced form equation for K2 will express: A) K1 as a function of K2 and the error terms. B) K2 as a function of K1and the error terms. C) K2 as a function of exogenous variables and the error terms. D) K1 as a function of exogenous variables, the error terms, and K2." class="answers-bank-image d-inline" rel="preload" > 1z1 + u1
K2 = 1 =   1K2 +   1z1 + u1 K2 =   2K1+   2z2 + u2 The reduced form equation for K2 will express: A) K1 as a function of K2 and the error terms. B) K2 as a function of K1and the error terms. C) K2 as a function of exogenous variables and the error terms. D) K1 as a function of exogenous variables, the error terms, and K2." class="answers-bank-image d-inline" rel="preload" > 2K1+ 1 =   1K2 +   1z1 + u1 K2 =   2K1+   2z2 + u2 The reduced form equation for K2 will express: A) K1 as a function of K2 and the error terms. B) K2 as a function of K1and the error terms. C) K2 as a function of exogenous variables and the error terms. D) K1 as a function of exogenous variables, the error terms, and K2." class="answers-bank-image d-inline" rel="preload" > 2z2 + u2
The reduced form equation for K2 will express:

Accepted Answer

A)  K1 as a function of K2 and the error terms.
B)  K2 as a function of K1and the error terms.
C)  K2 as a function of exogenous variables and the error terms.
D)  K1 as a function of exogenous variables, the error terms, and K2.E) B) and C)
F) All of the above

Question 2

A predetermined variable in a simultaneous equations model is:

Accepted Answer

A)  a constant.
B)  the error term.
C)  a lagged variable.
D)  an omitted variable.E) All of the above
F) A) and B)

Question 3

​The first step in estimating simultaneous equations models (SEMs) with panel data is to find instrumental variables for the endogenous variables in the transformed equation.

Accepted Answer

A) True 
 B)False

Question 4

A simultaneous equations model is suitable whenever two variables are determined simultaneously.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true?

Accepted Answer

A)  White test can be used to efficiently determine the presence of serial correlation in panel data.
B)  The t statistic is not an efficient test to determine serial correlation in panel data.
C)  Instrumental variables for both endogenous and exogenous variables are required for estimating simultaneous equation models concerned with panel data.
D)  2SLS should be applied to simultaneous equation models with panel data only after removing the unobserved effects from the equations of interest.E) C) and D)
F) B) and C)

Exam 16: Simultaneous Equations Models

The following equations represent a simultaneous equations model: K₁ = ₁K₂+ ₁z₁ + u₁ K₂ = ₂K₁+ ₂z₂ + u₂ The reduced form equation for K₂ will express:

Correct Answer
verified

A predetermined variable in a simultaneous equations model is:

Correct Answer
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The first step in estimating simultaneous equations models (SEMs) with panel data is to find instrumental variables for the endogenous variables in the transformed equation.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

A simultaneous equations model is suitable whenever two variables are determined simultaneously.

Correct Answer
verified

Exam 16: Simultaneous Equations Models

The following equations represent a simultaneous equations model: K1 = 1K2 + 1z1 + u1 K2 = 2K1+ 2z2 + u2 The reduced form equation for K2 will express:

Correct AnswerverifiedShow Answer

A predetermined variable in a simultaneous equations model is:

Correct AnswerverifiedShow Answer

​The first step in estimating simultaneous equations models (SEMs) with panel data is to find instrumental variables for the endogenous variables in the transformed equation.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

A simultaneous equations model is suitable whenever two variables are determined simultaneously.

Correct AnswerverifiedShow Answer

The following equations represent a simultaneous equations model: K₁ = ₁K₂+ ₁z₁ + u₁ K₂ = ₂K₁+ ₂z₂ + u₂ The reduced form equation for K₂ will express:

Correct Answer
verified

Correct Answer
verified

The first step in estimating simultaneous equations models (SEMs) with panel data is to find instrumental variables for the endogenous variables in the transformed equation.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified