Introduction

Research problems are questions that indicate gaps in the scope or the
certainty of our knowledge. They point either to problematic phenomena,
observed events that are puzzling in terms of our currently accepted ideas,
or to problematic theories, current ideas that are challenged by new
hypotheses. Since research is problem driven, the first thing to deal in
undertaking a study is to identify and determine the problem to study.
Identifying a research problem is important because, as the issue or
concern in a particular setting that motivates and guides the need for
conducting a study, it lays the foundation for an entire project.
 Rank and Order Conditions of Models

The Order Conditions

• First decision rule for Identification

• Specifies the necessary conditions for identification
• It is possible that the equation is undefined even though the order condition
says it is identified.
• In a system with only two equations, the order condition will work well and
can be trusted.
 The Rank Condition

• More complicated when dealing with larger systems of equations.

• It is a necessary and sufficient condition.
• investigates whether two or more equations are linearly dependent
on each other.