Restrictions on 2SLS problems and SHAZAM
A SHAZAM User asked:
I had some problems running Shazam as follows.
C, I, Y are three endogenous variables. G and R are two exogenous variables.
There are three equations, two with constants and coefficients, but one is like this:
Y=C+I+G
I wonder if I can still use the 2SLS function and so I wrote the code like this:
2SLS C Y (R G) / DN
2SLS I R (R G) / DN
2SLS Y C I G (R G) / RESTRICT
RESTRICT C=1
RESTRICT I=1
RESTRICT G=1
END
But, it doesn't work. The results are different to my analytical results, which I'm pretty sure are correct.
Can you please help me with this.