Equity Estimation and Assessing Market Response: A Rejoinder
Arvind Rangaswamy, Lakshman Krishnamurthi
Abstract
Arvind Rangaswamy, Lakshman Krishnamurthi
Abstract
The authors use a simulation that explores the same factors used by Wildt (1993), but provides results that refute several of the findings reported in that study. The authors maintain that, under conditions of multi-collinearity, the Equity estimator provides estimates that are typically closer to the true parameters than the ordinary least squares and Ridge estimates.
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The authors use a simulation that explores the same factors used by Wildt (1993), but provides results that refute several of the findings reported in that study. The authors maintain that, under conditions of multi-collinearity, the Equity estimator provides estimates that are typically closer to the true parameters than the ordinary least squares and Ridge estimates.
Key concepts: Collinearity, Econometrics, Estimator, Equity (law), Estimation, Ordinary least squares, Statistics, Economics