Hi all,
I'm working with a system of simultaneous equations to recognize the endogeneity of the growth determinants and hence determine the indirect effect of the wage gap on other growth determinants. This is after estimating my main growth model with GDP per capita(Y/P) as the dependent variable and; human capital(H), labor force participation(L/P), investment per gdp(I/Y), population growth(n), Hours of work(HW/L), and gender wage gap(Wgap) as the explanatory variables. However, I'm unable to include the lags of the endogenous variables in the system of simultaneous equations for the 3SLS to generate their coefficients as well. Please help!
I'm working with a system of simultaneous equations to recognize the endogeneity of the growth determinants and hence determine the indirect effect of the wage gap on other growth determinants. This is after estimating my main growth model with GDP per capita(Y/P) as the dependent variable and; human capital(H), labor force participation(L/P), investment per gdp(I/Y), population growth(n), Hours of work(HW/L), and gender wage gap(Wgap) as the explanatory variables. However, I'm unable to include the lags of the endogenous variables in the system of simultaneous equations for the 3SLS to generate their coefficients as well. Please help!
