Control Functions and Simultaneous Equations Methods

@inproceedings{BLUNDELL2013ControlFA,
  title={Control Functions and Simultaneous Equations Methods},
  author={By RICHARD BLUNDELL and Dennis Kristensen},
  year={2013}
}
Economic models of agent’s optimization problems or of interactions among agents often exhibit simultaneity. It is well known that any function in which an explanatory variable is partly determined by the dependent variable of the function, cannot be identified without additional information. Typically this additional information is provided by observable… CONTINUE READING