Other dependent variables in the model
The structural relationships that have been discussed in the preceding chapters will form the core of the simultaneous-equations model that will be presented in the next chapter. But before that, some further relationships will have to be discussed since the model is not yet complete: Some of the exogenous variables that serve as explanatory variables in one or more of the equations should in fact be considered endogenous, since they have a strong relationship to other variables in the model. The present chapter will examine how these variables can be endogenized.
KeywordsEurope Income Peru Venezuela
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