On Comparative Modeling Of Gls And Ols Estimating Techniques
Journal: International Journal of Scientific & Technology Research (Vol.3, No. 1)Publication Date: 2014-01-15
Authors : Atanlogun S.K.; Edwin O. A. Afolabi Y.O.;
Page : 125-128
Keywords : KEY WORDS Generalized Least Squares GLS; Ordinary Least Square OLS;
Abstract
ABSTRACT In this study GLS and OLS estimating techniques were compared. To achieve the goal GLS and OLS estimating techniques were applied on a simultaneous equation models that is Per Capital Gross Domestic Product equation model and Foreign Direct Investment equation model. Annual data was collected for Per Capital Gross Domestic Product Foreign Direct Investment Lending Rate of Interest and Exchange Rate Index for the period of 1983 to 2008 from the National Bureau of Statistics NBS and Central Bank of Nigeria Statistical Bulleting 2009. Results from the analysis showed that GLS and OLS estimating techniques produced the same values of coefficients and standard errors in the two equations. The study however concluded that the two estimators are both efficient alike which shows that the GLS estimator is an OLS estimator of a transformed isomorphic model. The R-package of statistical software was adopted. The two estimators provide BLUE Best Linear Unbiased Estimator under heteroscedasticityserial correlation.
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Last modified: 2014-08-17 18:48:53