Hi there,

I want to estimate simultaneous equation model with panel data. The model looks as follows

Y1=a0+a1*X1+a2*X2
Y2=b0+b1*X2+b2*X1
X1=Z1-(Y1/a1)
X2=Z2-(Y2/b1)
I
In this model Y1, Y2, X1 and X2 are endogenous variables; Z1, Z2 are exogenous variables and a0, a1, a2, b0, b1 and b2 are parameters. Could any one please help me how to estimate this model in R. Thanking you in anticipation

Cheers,
Waseem
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