R help - Apr 2012 - Systemfit with structural equations and cross equation parameter interaction

Hi there,

I want to estimate simultaneous equation model with panel data. The model looks
as follows

Y1=a0+a1*X1+a2*X2
Y2=b0+b1*X2+b2*X1
X1=Z1-(Y1/a1)
X2=Z2-(Y2/b1)
I
In this model Y1, Y2, X1 and X2 are endogenous variables; Z1, Z2 are exogenous
variables and a0, a1, a2, b0, b1 and b2 are parameters. Could any one please
help me how to estimate this model in R. Thanking you in anticipation

Cheers,
Waseem
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Dear Waseem

On 7 April 2012 09:20, waseem ahmad <waseemqaz at yahoo.com>
wrote:
> I want to estimate simultaneous equation model with panel data.
> The model looks as follows
>
> Y1=a0+a1*X1+a2*X2
> Y2=b0+b1*X2+b2*X1
> X1=Z1-(Y1/a1)
> X2=Z2-(Y2/b1)
> I
> In this model Y1, Y2, X1 and X2 are endogenous variables;
> Z1, Z2 are exogenous variables and a0, a1, a2, b0, b1 and b2
> are parameters. Could any one please help me how to estimate
> this model in R. Thanking you in anticipation
Please note that your third and fourth equations are non-linear in
parameters. For information on estimating systems of non-linear
equations with the systemfit package, please take a look at the FAQ
section of systemfit's website:

http://www.systemfit.org/

Best wishes,
Arne

-- 
Arne Henningsen
http://www.arne-henningsen.name