Authors : D.A. Agunbiade
Abstract: This study has investigated the effect of multicollinearity and the sensitivity of three different estimation methods of a Simultaneous equation econometric model. A Monte Carlo approach was employed for a three equation just identified model. The anlaysis for sample size n = 100 replication, R = 200 revealed the preference order of 3SLS, 2SLS and OLS using both mean and bias estimation criteria.
D.A. Agunbiade , 2011. Effect of Multicollinearity and the Sensitivity of the Estimation Methods in Simultaneous Equation Model. Journal of Modern Mathematics and Statistics, 5: 9-12.