background for the talk by Jaci Luisi and Kristin DeRose
The following are some definitions that apply to our talk:
Econometrics– the branch of economics concerned with the use of mathematical methods, especially statistics, in description systems.
Simultaneity– the property of two events happening at the same time
Endogenous Variables– determined within the model
Exogenous Variables– determined outside the model
I will be discussing the Simultaneous Equations Model from Econometrics.
I will introduce the model and then go through an example. I’ll finish by introducing EViews, a statistical package that is useful for Econometrics.
Then, me and Kristin will both explain how EViews works and why it is a useful tool.
Finally, Kristin will be using real data to show the OLS and 2SLS methods.
She will also test for Simultaneity and compare the two different method results.