Månsson, Kristofer; Shukur, Ghazi; Sjölander, Pär - Handelns Utredningsinstitut (HUI Research) - 2012
induces multicollinearity problems since all non-zero values are equal between the interaction term and the regressor. In this … AIR using the mean square error (MSE) performance criterion. The result from the simulation study confirms our hypothesis … that AIR always should be preferred to OLS since it has a lower estimated MSE. Moreover, the advantages of our new method …