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Posted 03-02-2020 08:03 PM
(672 views)
Two equations
Y = X + V1 + V2 + industry + time
X = Y + V1 + V2 + industry + time
I have an instrument, Z, that can be used to predict X.
I also have about 100 of industry and time dummies. (So I can't use 'model').
How do I go about producing the estimated coefficients for the above two equations?
No STATA, nor SAS seem to have the procedure for simultaneous equations.
2 REPLIES 2
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With simultaneous equations, you need to do a little algebra first to "solve" the simultaneous equations and then fitting a model ought to be easy. And yes you can use dummy variables.
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Paige Miller
Paige Miller
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Better post it at Forecast forum since it is about SAS/ETS .
PROC MODEL can't do it ?