Multiple Equation Models

Question 1

Simultaneous Equations Assumptions

Answer 1

Multiple regression equations comprise a single set of models

Regressors in some of the equations are dependent variables in other equations

Independence
Homoskedasticity
Linearity
Normality

Question 2

Seemingly Unrelated Regression (SUR) Assumptions

Answer 2

Multiple regression equations comprise a single set of models.

Independence within equations but not necessarily across equations

Homoskedasticity
Exogeneity
Linearity
Normality

Question 3

Logit/Probit/Tobit Assumptions

Answer 3

Dependent variable is discrete.
Homoskedasticity
Independence
Exogeneity