Endogenous - nyu.edu
Structural Mo del: C t = 0 + 1 Y Y t = C + I Reduced F orm: Substitute the rst equation in to second equation: Y t = 0 + 1 I Y t 1 = 0 + I Y t (1 1) = 0 + I Y t = 1 0 1 1 + I t Y t = 0 + 1 I! where: = 0
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