Step 4:

From the above coefficients of excluded parameters formulate all possible determinants of
order (M-1) and check their value. If at least one determinant of order (M-1) that is (3*3) is non
zero, we can conclude that the first equation is identified otherwise it is unidentified. In case of
above example we found only one determinant of order (3*3) which is illustrated below.
0 22 0
1 = 0 32 0
1 0 43
3*3
Where the symbol represents determinant. As we can see that we are fail to formulate non zero
determinant therefore equation one is unidentified. Following same method we can check
identification of the remaining equations. If we found that an equation is identified then we will
proceed to step 5.