IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-04c10016.html
   My bibliography  Save this article

Multicollinearity and maximum entropy leuven estimator

Author

Listed:
  • Sudhanshu Mishra

    (North-Eastern Hill University)

Abstract

Multicollinearity is a serious problem in applied regression analysis. Q. Paris (2001) introduced the MEL estimator to resolve the multicollinearity problem. This paper improves the MEL estimator to the Modular MEL (MMEL) estimator and shows by Monte Carlo experiments that MMEL estimator performs significantly better than OLS as well as MEL estimators.

Suggested Citation

  • Sudhanshu Mishra, 2004. "Multicollinearity and maximum entropy leuven estimator," Economics Bulletin, AccessEcon, vol. 3(25), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-04c10016
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2004/Volume3/EB-04C10016A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Quirino Paris, 2001. "Multicollinearity and maximum entropy estimators," Economics Bulletin, AccessEcon, vol. 3(11), pages 1-9.
    2. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mishra, SK, 2012. "A comparative study of trends in globalization using different synthetic indicators," MPRA Paper 38028, University Library of Munich, Germany.
    2. Sudhanshu K. MISHRA, 2016. "Shapley Value Regression and the Resolution of Multicollinearity," Journal of Economics Bibliography, KSP Journals, vol. 3(3), pages 498-515, September.
    3. Mishra, SK, 2004. "Estimation under Multicollinearity: Application of Restricted Liu and Maximum Entropy Estimators to the Portland Cement Dataset," MPRA Paper 1809, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Msangi, Siwa & Howitt, Richard E., 2006. "Estimating Disaggregate Production Functions: An Application to Northern Mexico," 2006 Annual meeting, July 23-26, Long Beach, CA 21080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Akpalu, Wisdom & Hassan, Rashid M. & Ringler, Claudia, 2008. "Climate variability and maize yield in South Africa: Results from GME and MELE methods," IFPRI discussion papers 843, International Food Policy Research Institute (IFPRI).
    3. Mishra, SK, 2004. "Estimation under Multicollinearity: Application of Restricted Liu and Maximum Entropy Estimators to the Portland Cement Dataset," MPRA Paper 1809, University Library of Munich, Germany.
    4. repec:ebl:ecbull:v:3:y:2004:i:25:p:1-11 is not listed on IDEAS
    5. Howitt, Richard E. & Msangi, Siwa, 2002. "Reconstructing Disaggregate Production Functions," 2002 Annual meeting, July 28-31, Long Beach, CA 19585, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. repec:lrk:lrkwkp:fiirs016 is not listed on IDEAS
    7. Axel Tonini & Roel Jongeneel, 2009. "The distribution of dairy farm size in Poland: a markov approach based on information theory," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 55-69.
    8. Miguel Henry & George Judge, 2019. "Permutation Entropy and Information Recovery in Nonlinear Dynamic Economic Time Series," Econometrics, MDPI, vol. 7(1), pages 1-16, March.
    9. Hyeok Lee & Yong Kyun Kim, 2018. "The effects of external shocks on the Korean economy: CGE model-based analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-14, December.
    10. Wang, Yafeng & Graham, Brett, 2009. "Generalized Maximum Entropy estimation of discrete sequential move games of perfect information," MPRA Paper 21331, University Library of Munich, Germany.
    11. Arndt, Channing & Simler, Kenneth R., 2005. "Estimating utility-consistent poverty lines," FCND briefs 189, International Food Policy Research Institute (IFPRI).
    12. Luca Secondi, 2019. "Expiry Dates, Consumer Behavior, and Food Waste: How Would Italian Consumers React If There Were No Longer “Best Before” Labels?," Sustainability, MDPI, vol. 11(23), pages 1-15, December.
    13. Wobst, Peter & Arndt, Channing, 2004. "HIV/AIDS and Labor Force Upgrading in Tanzania," World Development, Elsevier, vol. 32(11), pages 1831-1847, November.
    14. Esteban Fernandez-Vazquez & Bart Los & Carmen Ramos-Carvajal, 2008. "Using Additional Information in Structural Decomposition Analysis: The Path-based Approach," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 367-394.
    15. Amos Golan & Stephen Vogel, 2000. "Estimation of Non-Stationary Social Accounting Matrix Coefficients with Supply-Side Information," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 447-471.
    16. de Figueiredo, Erik Alencar & Ziegelmann, Flávio Augusto, 2010. "Estimating income mobility using census data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(21), pages 4897-4903.
    17. Nicole Branger, 2004. "Pricing Derivative Securities Using Cross-Entropy: An Economic Analysis," International Journal of Theoretical and Applied Finance (IJTAF), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 63-81.
    18. Amos Golan & Enrico Moretti & Jeffrey M.Perloff, 2004. "A Small-Sample Estimator for the Sample-Selection Model," Econometric Reviews, Taylor & Francis Journals, vol. 23(1), pages 71-91.
    19. Golan, Amos & Karp, Larry S & Perloff, Jeffrey M, 2000. "Estimating Coke's and Pepsi's Price and Advertising Strategies," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(4), pages 398-409, October.
    20. Rubiera-Morollón, Fernando & Fernández-Vázquez , Esteban & Aponte-Jaramillo, Elizabeth, 2012. "Estimation and analysis of labor productivity in Spanish cities," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 22, pages 129-151.
    21. You, Liangzhi & Wood, Stanley, 2006. "An entropy approach to spatial disaggregation of agricultural production," Agricultural Systems, Elsevier, vol. 90(1-3), pages 329-347, October.
    22. Golan, Amos & Perloff, Jeffrey M. & Wu, Ximing, 2001. "Welfare Effects of Minimum Wage and Other Government Policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt0gb7h58q, Department of Agricultural & Resource Economics, UC Berkeley.

    More about this item

    Keywords

    maximum entropy;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-04c10016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.