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11pt
2012 Mar 22
1
Simalteneous Equation Doubt in R
...a5D1+a6D2+a7D3+U1 -(1)
Where D1,D2,D3=Quarterly Dummy Variables(Since quarterly data are
considered)
Here, Supply equation has 1 endogenous (St) & 6 exogenous variables (P
t-1,Rt-1,St-1,D1,D2,D3)
Demand Side:
Demand of corn is divided into 3 equations:
Feed equation:
Ft=b0+b1Pt+b2P(sm)t+b3Bt+b4COFt+b5Ht+a6D1+a7D2+a8D3+U2 -(2)
here there are 2 endogenous variable(Ft, Pt) & 7 exogenous variables
(P(sm)t,Bt,COFt,D1,D2,D3)
Export equation:
EXt= c0+c1Pt+c2EXt-1+c3Wt+c4DXt+c5GDPt+c6D1+c7D2+c8D3+U3 -(3)
here there are 2 endogenous variable(EXt, Pt) &...