CHAPTER 6. SIMULTANEOUS EQUATIONS
In general a behavioral or structural simultaneous equations system can be written (6) yt B + zt Γ = t, where yt = (y1t, .,yNt) is a 1×N vector of the endogenous variab les, B is a N×N array of coefficients, zt = (z n1, .,z Mt t t. The reduced form for this system is (7) yt = zt Π + νt,
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