Simultaneity o Simultaneity is a specific type of endogeneity problem in which the explanatory variable is jointly determined with the dependent variable o As with other types of endogeneity, IV estimation can solve the problem o Some special issues to consider with simultaneous equations modelS (SEM) Economics 20- Prof andersonEconomics 20 - Prof. Anderson 2 Simultaneity Simultaneity is a specific type of endogeneity problem in which the explanatory variable is jointly determined with the dependent variable As with other types of endogeneity, IV estimation can solve the problem Some special issues to consider with simultaneous equations models (SEM)