What does simultaneous equations model mean?
Definitions for simultaneous equations model
si·mul·ta·ne·ous equa·tions mod·el
This dictionary definitions page includes all the possible meanings, example usage and translations of the word simultaneous equations model.
Wikipedia
Simultaneous equations model
Simultaneous equations models are a type of statistical model in which the dependent variables are functions of other dependent variables, rather than just independent variables. This means some of the explanatory variables are jointly determined with the dependent variable, which in economics usually is the consequence of some underlying equilibrium mechanism. For instance, in the simple model of supply and demand, price and quantity are jointly determined.Simultaneity poses challenges for the estimation of the statistical parameters of interest, because the Gauss–Markov assumption of strict exogeneity of the regressors is violated. And while it would be natural to estimate all simultaneous equations at once, this often leads to a computationally costly non-linear optimization problem even for the simplest system of linear equations. This situation prompted the development, spearheaded by the Cowles Commission in the 1940s and 1950s, of various techniques that estimate each equation in the model seriatim, most notably limited information maximum likelihood and two-stage least squares.
Numerology
Chaldean Numerology
The numerical value of simultaneous equations model in Chaldean Numerology is: 5
Pythagorean Numerology
The numerical value of simultaneous equations model in Pythagorean Numerology is: 6
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"simultaneous equations model." Definitions.net. STANDS4 LLC, 2024. Web. 29 Apr. 2024. <https://www.definitions.net/definition/simultaneous+equations+model>.
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