AUTHORS: Timbang Sirait
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Models which describe a two-way flow of influence among dependent variables are called simultaneous equation models. Simultaneous equation models using panel data, especially for fixed effect where there are spatial autoregressive with exact solutions, still few of their development and require to be developed. This paper proposed feasible generalized least squares-three-stage least squares (FGLS-3SLS) to find all the estimators with exact solution. The proposed estimators are proved to be consistent.
KEYWORDS: simultaneous equation models, panel data, fixed effect, spatial autoregressive, FGLS, 3SLS, consistent
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