Re: [R] simultaneous equation model with endogenous interaction terms

Dear Janka On 10 August 2015 at 11:25, Janka Vanschoenwinkel wrote: > Dear list members, > > I am building a model such as: > > Y1 = Y2*X1 + X2 > Y2 = Y1*X1 + X2 Do you mean the model: Y1 = b10 + b11 * (Y2*X1) + b12 * X2 + e1 Y2 = b20 + b21 * (Y1*X1) + b22 * X2 + e2 where Y1 and Y2 are two (e

[R] simultaneous equation model with endogenous interaction terms

Dear list members, I am building a model such as: Y1 = Y2*X1 + X2 Y2 = Y1*X1 + X2 X2 is the exogenous variable Z1 is the instrument of Y1 Z2 is the instrument of Y2 This is a simultaneous equation model. I know how to build a simultaneous equation model without interaction terms: library(syste