INCORPORATION OF NONNUMERIC INFORMATION INTO THE ESTIMATION OF ECONOMIC MODELS: A NEW APPROACH FOR DEALING WITH MULTICOLLINEARITY

G. Hossein Parandvash

No 270201, 1988 Annual Meeting, August 1-3, Knoxville, Tennessee from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Results from Monte Carlo experiments indicate reduced squared error loss under most circumstances by a new nonnumeric information mixed estimator (NIME) compared to OLS and three leading ridge estimators in the presence of multicollinearity. There may also be some philosophical advantages of the NIME approach over ridge regression.

Keywords: Agricultural and Food Policy; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 15
Date: 1988-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea88:270201

DOI: 10.22004/ag.econ.270201

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