3. Suppose we have two equations, each satisfying the CNLR model: y = a + aix + azz + E p= ßa+Biw + B2q + B3z + a. Explain how you would test jointly the "cross-equation" restrictions as B2 = 1 and a Bu assuming that V(c) = V(o). b. Suppose you knew that V(E) = 2V(o). How would you estimate these parameters, assuming the restrictions are true?
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come and enter uep-vvbv-wtw
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