**ILS / Indirect Least Squares**

**Definition of ILS / Indirect Least Squares:**
ILS stands for Indirect Least Squares, an approach to the estimation of simultaneous
equations models. Steps:

- Rearrange the structural form equations into reduced form
- Estimate the reduced form parameters
- Solve for the structural form parameters in terms of the reduced form parameters, and substitute in the estimates of the reduced form parameters to get estimates for the structural ones.

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