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.

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Definitions:

Universal Portability

A concept often related to social security or benefits systems, allowing individuals to retain their benefits or rights across different jobs, regions, or countries.

CPP

The Canada Pension Plan, a social insurance program requiring contributions from Canadian workers and employers to provide retirement, disability, and survivor benefits.

QPP

The Quebec Pension Plan, a public retirement plan for individuals in Quebec to provide financial security when they retire.

Employment Insurance (EI)

A social welfare program that provides temporary financial assistance to unemployed workers who meet certain eligibility criteria.