The rank condition of identification states that in a model containing M equations in M endogenous variables, and K predetermined variables, an equation is identified if and only if at least one non - zero determinant of the following order can be constructed from the coefficients of the variables excluded from that particular equation but included in other equations of the model:
1
M × K
2
(M - 1) (K - 1)
3
(M -1) (M - 1)
4
(K - 1) (K - 1)