* R. Carter Hill, William E. Griffiths and Guay C. Lim, * Principles of Econometrics, Third Edition, Wiley, 2008. * Chapter 11 Simultaneous Equations Models SAMPLE 1 30 READ (truffles.shd) P Q PS DI PF * Reduced form estimation (Tables 11.2a & b, page 313) OLS Q PS DI PF OLS P PS DI PF * 2SLS Estimation for Demand (Table 11.3a, page 313) 2SLS Q P PS DI (PS PF DI) * 2SLS Estimation for Supply (Table 11.3b, page 314) 2SLS Q P PF (PS PF DI) * An equivalent approach is to use the SYSTEM command. * The option ITER=0 specifies estimation by 2SLS. * The DN option uses a divisor of N for calculating the error * variances. Therefore, the standard errors will be different * from the previous estimations. SYSTEM 2 PS PF DI / ITER=0 DN OLS Q P PS DI OLS Q P PF END * Allow for cross-equation error correlation and use 3SLS estimation. SYSTEM 2 PS PF DI / DN OLS Q P PS DI OLS Q P PF END STOP