The necessary condition for identification of an equation is called the _____.
A)order condition
B)rank condition
C)condition of instrumental exogeneity
D)the condition of instrumental relevance

Question

Quizplus · Accepted Answer

The order condition is a necessary condition for the identification of an equation in a simultaneous equations model. It involves comparing the number of excluded instruments to the number of endogenous variables in the equation.

The Necessary Condition for Identification of an Equation Is Called