Simultaneous equation methods (econometrics)

Simultaneous equation methods are a set of statistical techniques used in econometrics to analyze models in which multiple endogenous variables are interdependent. In such models, changes in one variable can simultaneously affect others, making it difficult to establish causal relationships using standard regression techniques. Essentially, the relationships among the variables are interrelated and can be described by a system of equations. ### Key Features of Simultaneous Equation Methods 1.