I had earlier sent the message below to statalist. However, a few
minutes ago, it struck me that the equations I have may not be a
"simultaneous equation model" at all. This is based partly on Kit
Baum's message on http://www.stata.com/statalist/archive/2004-03/
msg01120.html.
In our model (given below), none of the endogeneous variables affect
each other at that time. All the variables on the right-hand sides of
all equations are either exogneous of lagged-endogeneous (i.e., pre-
determined).
Therefore, it would seem that simple panel regressions, rather than
simultaneous models, would be appropriate. Am I missing something?
Thanks, and best wishes,
Rajiv
On Feb 23, 2007, at 1:25 PM, Rajiv Sabherwal wrote:
Hello,
A PhD student and I are trying to test a model containing
simultaneous equations such as the following:
y1(t) = a1 + b11*y1(t-1) + b12*y2(t-1) +b13*y3(t-1) + b14*y4(t-1) +
b15*y5(t-1) + b16*x1 + b17*x2
y2(t) = a2 + b21*y2(t-1) + b23*y3(t-1) + b24*y4(t-1) + b25*y5(t-1)
+ b26*x1 + b27*x2
y3(t) = a3 + b31*x3 + b32*x4 +b33*x5
y4(t) = a4 + b41*x6 + b42*x7
y5(t) = a5 + b51*x8 + b52*x9