153. The method of Indirect Least Squares (ILS) 1. Simplify the original model, and get the reduced form regression model C-B,+BY+ox B B 1-B21-B21-B2 C=A+A2 2+Vt A1=B/(1B2)A2=B2/(1-B2),andu=u/(1-B215.3. The Method of Indirect Least Squares（ILS） 1. Simplify the original model, and get the reduced form regression model Ct=B1+B2Yt+ut Ct=A1+A2 I 2+vt A1=B1 /(1-B2 ),A2=B2 /(1-B2 ),andυt=ut /(1-B2 ). t t ut B I B B B B C 2 2 2 2 1 1 1 1 1 − + − + − =