Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5055499 | Economic Modelling | 2012 | 7 Pages |
Abstract
âºMulticollinearity leads to high variance of estimated parameters of regression models. âºUsing Monte Carlo simulations this is shown to hold for the negative binomial model. âºA ridge regression estimator is proposed to reduce the variance. âºSome methods of estimating the ridge parameter are suggested. âºThe simulated results show that the ridge regression estimator reduces the variance.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kristofer MÃ¥nsson,