ESTIMATION OF EFFICIENT REGRESSION MODELS FOR APPLIED AGRICULTURAL ECONOMICS RESEARCH



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, p1

0.29

0.13

0.17

Huber 2 c=2

0.32

0.13

0.16

GT, p1

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 absent
2. The name is absent
3. Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change
4. Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)
5. An Estimated DSGE Model of the Indian Economy.
6. IMMIGRATION AND AGRICULTURAL LABOR POLICIES
7. Hemmnisse für die Vernetzungen von Wissenschaft und Wirtschaft abbauen
8. Bidding for Envy-Freeness: A Procedural Approach to n-Player Fair Division Problems
9. WP 36 - Women's Preferences or Delineated Policies? The development or part-time work in the Netherlands, Germany and the United Kingdom
10. The Provisions on Geographical Indications in the TRIPS Agreement