The word recursive is used to describe an equation that

The word recursive is used to describe an equation that has an impact on a simultaneous system without any feedback from the system to the equation. Which of the equations in the following systems are simultaneous, and which are recursive? Be sure to specify which variables are endogenous and which are predetermined:

a. Y1t = β0 + β1Y2t + β2X1t + β3X2t-1 + ε1t

Y2t = α0 + α1Y3t + α2Y1t + α3X4t + ε2t

Y3t = Ω0 + Ω1X2t + Ω2X1t-1 + Ω3X4t-1 + ε3t

b. Zt = β0 + β1Xt + β2Yt + β3Ht + ε1t

Xt = ­0 + α1Zt + α2Pt-1 + ε2t

Ht = Ω0 + Ω1X2t + Ω2Bt + Ω3CSt + Ω4Dt + ε3t

c. Y1t = β0 + β1Y2t + β2X1t + β3X2t + ε1t

Y2t = α0 + α1Y3t + α2X5t + ε2t

 

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