Table 1. Root Mean Squared Error (RMSE) of slope estimators (sample size = 50; number of samples =
500). Source: McDonald and White (1993).
Underlying Error-Term |
Underlying Error-Term | ||||||
Estimation Technique |
Normal |
Normal Mixture |
Log- Normal |
Estimation Technique |
Normal |
Normal Mixture |
Log- Normal |
OLS |
0.28 |
0.28 |
0.28 |
Huber 1, c=1 |
0.29 |
0.14 |
0.16 |
LAD |
0.35 |
0.13 |
0.17 |
Huber 1, c=1.5 |
0.28 |
0.16 |
0.18 |
BT |
0.29 |
0.14 |
0.18 |
Huber 1, c=2 |
0.28 |
0.19 |
0.20 |
GT |
0.30 |
0.12 |
0.12 |
Huber 2 c=1 |
0.56 |
0.12 |
0.12 |
T |
0.28 |
0.11 |
0.12 |
Huber 2 c=1.5 |
0.41 |
0.11 |
0.15 |
BT, p≥1 |
0.29 |
0.13 |
0.17 |
Huber 2 c=2 |
0.32 |
0.13 |
0.16 |
GT, p≥1 |
0.30 |
0.12 |
0.12 |
Manski (AML) |
0.28 |
0.12 |
0.13 |
EGB2(p=q) |
0.28 |
0.12 |
0.15 |
Newey (j) |
0.30 |
0.12 |
0.11 |
EGB2 |
0.29 |
0.12 |
0.05 |
Proposed |
0.28 |
0.11 |
0.05 |
Notes: OLS is the Ordinary Least Squares estimator; LAD is the Least Absolute Deviations estimator
(Gentle, 1997); BT is the power exponential or Box-Tiao estimator (Zeckhauser and Thompson, 1970), GT
is a partially adaptive estimator based on the generalized t distribution (McDonald and Newey, 1984,
1988); t is a partially adaptive estimator based on the Student’s t distribution; EGB2 is a partially adaptive
estimator based on the exponential generalized beta distribution of the second kind; Huber 1 and 2 refer to
the estimators proposed by Huber (1964) and Huber (1981); Manski (AML) is the adaptive maximum
likelihood estimator advanced by Hsieh and Manski (1987) based on a normal kernel density; and Newey
(j) is the generalized method of moments estimator with j moments used in estimation (Newey, 1988). For
more details about the former estimation techniques please see McDonald and White (1993).
24
More intriguing information
1. The name is absent2. Personal Income Tax Elasticity in Turkey: 1975-2005
3. Should Local Public Employment Services be Merged with the Local Social Benefit Administrations?
4. Iconic memory or icon?
5. Gender and headship in the twenty-first century
6. Improving the Impact of Market Reform on Agricultural Productivity in Africa: How Institutional Design Makes a Difference
7. The name is absent
8. ENVIRONMENTAL POLICY: THE LEGISLATIVE AND REGULATORY AGENDA
9. The name is absent
10. Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change