1. How does a seemingly unrelated regression study relate to a panel study? Show the variance
covariance matrix for a SUR with two equations, each of which has an autocorrelated error.
Explain what each element in that matrix means.
2. Suppose you are ana
Second Exam Sample Questions
1. Assume a system of simultaneous equations with 4 endogenous variables (A, B, C, D) and 4
exogenous variables (X, Y, Z, W).
a. Using the order condition for identification, create structural equations for the model such
What assumptions are necessary to prove that the least square estimator has a normal
Assume that you have cross sectional household data with which to analyze the effects of
family income (net of income taxes) on the consumpti