In the presence of simultaneous problem the Ols estimators are generally not BLUE They are biased in small sample) and inconsistent (in large sample) Inconsistent estimator is the estimator which does not approach the true parameter value even if the sample size increases definitely
In the presence of simultaneous problem, the OLS estimators are generally not BLUE. They are biased （ in small sample ） and inconsistent（in large sample） Inconsistent estimator is the estimator which does not approach the true parameter value even if the sample size increases indefinitely
153. The method of Indirect Least Squares (ILS) 1. Simplify the original model, and get the reduced form regression model C-B,+BY+ox B B 1-B21-B21-B2 C=A+A2 2+Vt A1=B/(1B2)A2=B2/(1-B2),andu=u/(1-B2
15.3. The Method of Indirect Least Squares（ILS） 1. Simplify the original model, and get the reduced form regression model Ct=B1+B2Yt+ut Ct=A1+A2 I 2+vt A1=B1 /(1-B2 ),A2=B2 /(1-B2 ),andυt=ut /(1-B2 ). t t ut B I B B B B C 2 2 2 2 1 1 1 1 1 − + − + − =