Comparison between two stages least square method and three stages least square method In exact identification: simulation experiments

Abstract

The research is concerned with the concept of simultaneous equation models and its importance in the formulation of the economical relation ships in which the variables affect each others ,the research is also concerned with the main methods in the estimation of the parameters of these models by 2SLS and 3SLS , then make a comparison between these two methods by four simulation experiments for different correlations between error terms and replicate these experiments for three samples 25,50,75 to reach the best method for estimation .

Keywords

Comparison