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.

(c) (4%) Is the proposed estimator in (b) consistent when y₂ = o? Why?