An Equation in the Simultaneous Equations Model Satisfies the Order

question 5

Multiple Choice

An equation in the simultaneous equations model satisfies the order condition for identification if:

• A)the number of excluded endogenous variables from the equation is at most as large as the number of right-hand side exogenous variables.
• B)the number of excluded endogenous variables from the equation is at least as large as the number of right-hand side exogenous variables.
• C)the number of excluded exogenous variables from the equation is at most as large as the number of right-hand side endogenous variables.
• D)the number of excluded exogenous variables from the equation is at least as large as the number of right-hand side endogenous variables.