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| Sudhanshu Mishra |
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| ''Multicollinearity and maximum entropy leuven estimator'' |
| ( 2004, Vol. 3 No.25 ) |
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| 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. |
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| Keywords: maximum entropy |
JEL: C1 - Econometric and Statistical Methods: General
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| Manuscript Received : Jul 14 2004 | | Manuscript Accepted : Jul 15 2004 |
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