Describe indirect least squares, Advanced Statistics

 

Indirect least squares: An estimation technique used in the fitting of structural equation models.

Commonly least squares are first used to estimate reduced form parameters. Using the relations between the structural and reduced form the parameters it is subsequently solved for the structural parameters in the terms of the estimated reduced form parameters. Indirect least squares estimates are consistent however not unbiased. 

 

Posted Date: 7/28/2012 8:50:00 AM | Location : United States







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