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    aaronhonour Posts: 1, Reputation: 1
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    Jun 29, 2016, 09:52 AM
    Which econometric model should I use?
    I want to build a model and I currently have the equation: Y = x1 + x2 + x3 + u1

    I then have explanatory variables for each of the variables on the right
    So:
    x1= p1+p2+p3+u2
    x2= s1+s2+s3+s2
    x3= a1+a2+a3+u2

    Which model will allow me to ensure that all of these variables are considered when I am creating the model? I thought about using a simultaneous equation model but my initial independent variable Y does not occur in the later equations so I do not think I can or I do not know how to use this model.

    Any tips or advice is greatly appreciated!


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