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System of Equations

  • Hubert Gatignon
Chapter
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Abstract

In this chapter we consider the case where several dependent variables are explained by linear relationships with other variables. Independent analysis of each relationship by ordinary least squares could result in incorrect statistical inferences either because the estimation is not efficient (a simultaneous consideration of all the explained variables may lead to more efficient estimators for the parameters) or may be biased in cases where the dependent variables influence each other.

Keywords

Covariance Matrix Ordinary Little Square Exogenous Variable Endogenous Variable Rank Condition 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Hubert Gatignon
    • 1
  1. 1.INSEADFontainebleau CedexFrance

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