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(c) Consider the following set of simultaneous equations: Y1t=1+1X1t+u1tY2t=2+1Y1t+3Y3t+u2tY3t=3+2Y2t+2X2t+u3t Can you estimate equation (4) with OLS assuming X1 and X2 are exogenous? Explain. [2]

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(c) Consider the following set of simultaneous equations: Y1t=1+1X1t+u1tY2t=2+1Y1t+3Y3t+u2tY3t=3+2Y2t+2X2t+u3t Can you estimate equation (4) with OLS assuming X1 and X2 are exogenous? Explain. [2]

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