The use
of biased estimation techniques is inevitable in connection with
multicollinearity. Two stage ridge estimator is a pioneer biased estimator
which is use to recover the problems that are originated from the
multicollinearity. The noteworthy issue regarding two stage ridge estimator is
selection of its biasing parameter. This article investigates several methods
on selection of the biasing parameter of the two stage ridge estimator based on
the works in the literature related to ridge estimator in a linear regression
model. To demonstrate the best estimators of the biasing parameter, a Monte
Carlo experiment is conducted. The utility of the proposed estimators of the
biasing parameter for two stage ridge estimator is observed in terms of mean
square error criterion.
biasing parameter multicollinearity ridge estimator two stage least squares
Birincil Dil | İngilizce |
---|---|
Konular | Matematik |
Bölüm | Araştırma Makalesi |
Yazarlar | |
Yayımlanma Tarihi | 1 Aralık 2018 |
Gönderilme Tarihi | 9 Mayıs 2018 |
Kabul Tarihi | 1 Ekim 2018 |
Yayımlandığı Sayı | Yıl 2018 Cilt: 22 Sayı: 6 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.