題組內容

7. (15%) Consider the following simultaneous equations mode!:

where E(u_i) = E(v_i) = o, Cov(u_i， V_i) = Cov(Z_i, W_i) = o, and Z_i and W_iare exogenous.

(b) (6%) Given the observations (X_i, Y_i, W_i, Z_i), i = 1, .. n, describe the method and proce- dure to estimate f, consistently?