Abstract
The different panel data models discussed in the preceding chapters, consisted of only one regression equation. However, in many situations, due to the interdependence of economic variables, it may be more appropriate to represent economic phenomena by a system of simultaneous equations. For instance, it is the ideal choice for modelling supply and demand in one or several markets, for modelling the demand for factors of production by firms (using the first order conditions of profit maximisation) and obviously for representing a whole macro-economic system. Other examples can also be found in areas like finance, marketing and so on.
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Krishnakumar, J. (1996). Simultaneous Equations. In: Mátyás, L., Sevestre, P. (eds) The Econometrics of Panel Data. Advanced Studies in Theoretical and Applied Econometrics, vol 33. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-0137-7_9
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DOI: https://doi.org/10.1007/978-94-009-0137-7_9
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