This paper provides simple computational procedures for the calculation of the correct estimated covariance ma trix and associated standard errors for a commonly used regression sh ortcut, whereby ridge-regression estimates are obtained via an augmen ted ordinary least squares regression....

This paper introduces an exact transformation matrix useful for estimating single equations from a rational expectations simultaneous model with MA(1) composite disturbances by means of instrumental variables techniques. An illustrative example is provided. Copyright 1990 by Blackwell Publishing Ltd