A Pedagogic Note: Comparison of 0LS, 2SLS and 3SLS Estimation Methods

Abstract

Introduction The application of statistics to the study of economic relationships is often characterized by unique problems. Although prediction may be an important part of a study's objectives, generally the econometrician is more concerned with the form of the relationship between economic variables for such information enables him to define the transmission mechanism between economic variables. Knowledge of the functional relationship between variables makes it possible to trace the impact of a change in a control or policy variable on and through other variables in the system under study.

Citation

Heck, J.L. (1977), "A Pedagogic Note: Comparison of 0LS, 2SLS and 3SLS Estimation Methods", Studies in Economics and Finance, Vol. 1 No. 1, pp. 28-33. https://doi.org/10.1108/eb028587