Structural Parameters

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August 31, 2024 4 min read Definitions
Indirect Least Squares: An Overview of Estimating Structural Parameters
Mathematics Statistics Indirect Least Squares Simultaneous Equations Model Structural Parameters Reduced Form Ordinary Least Squares
Indirect Least Squares is a method for estimating the structural parameters of a single equation in a simultaneous equations model. It involves estimating the parameters of the system in the reduced form using ordinary least squares and solving for the structural parameters in terms of the reduced form parameters.
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