The following two equations describe property crime and police expenditures across U.S. cities: Crimei = a0 a1Policei a2Incomei u1,i Policei = b0 b1Crimei b2Incomei b3Liberali u2,1 Crimei = Number of crimes committed in city i last year Policei = Total spending on the police force in city i last year Incomei = Average income in city i last year Liberali = Share of votes received by the liberal presidential candidate from city i in the last election a. If you were to estimate these two equations with OLS, would you get consistent estimates? Why or why not? b. Which of the two equations is fully identified? How do you know this? c. Describe how you would estimate one or both of the equations using 2SLS. Describe the properties of the estimates in both equations. Come up with another explanatory variable that you could ass to one of these equations to make the system fully identified. Justify the inclusion of this variable. Discuss practical and theoretical drawbacks of using 2SLS