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Model Building with Multiple Dependent Variables and Constraints

Author

Listed:
  • Tofallis, C.

Abstract

The most widely used method for finding relationships between several quantities is multiple regression. This however is restricted to a single dependent variable. We present a more general method which allows models to be constructed with multiple varaibles on both sides of an euqation and which can be computed easily using a spreadsheet program. The underlying principle (originating from canonical analysis) is that of maximizing the correlation between the two sides of the model equation.

Suggested Citation

  • Tofallis, C., 1998. "Model Building with Multiple Dependent Variables and Constraints," Papers 1998:07, University of Hertfordshire - Business Schoool.
  • Handle: RePEc:fth:hertbu:1998:07
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    Keywords

    MODELS;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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