Economy, asked by PuneetSahu5413, 1 year ago

Explain the Rank & Order condition of Identification.

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Answered by Anonymous
0

The order condition is NECESSARY for identification but it is not SUFFICIENT.

A sufficient condition for the identification of a relationship is that the rank of the matrix of parameters of all the excluded variables (endogenous and pre-determined) from that equation be equal to (G-1).

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