In the context of simultaneous equations econometric models, consider the following statements :
(i) Both order and rank conditions for identification are to be satisfied before estimation.
(ii) Order condition is a necessary but not a sufficient condition of identification.
(iii) Two-stage least squares method is suitable for over-identified equations.
Which of the above statements is/are correct?
Choose the correct answer from the code given below :
1
Only (i)
2
(i), (ii) and (iii)
3
(i) and (iii)
4
Only (ii)