Based on the order, state whether the first equation is identified?
Given the following structural model
Y1 = 3y2 − 3x1 + x2 + u1
Y2 = y3 + x3 + u2
Y3 = y1 − y2 − 2x3 + u3
Where y' s are the endogenous variables, x' s are predetermined variables and u's are random
1
Over identified
2
Under identified
3
Exactly identified
4
Information not sufficient