Gómez, Román Salmerón; Martínez, Eduardo Rodríguez - In: Revista de Métodos Cuantitativos para la Economía y … 24 (2017), pp. 169-189
It is known that, when in the linear regression model there is a high degree of multicollinearity, the results obtained by using the Ordinary Least Squares (OLS) method are unstable. As a solution to this situation, in this paper we present the raised method, the ridge method and the orthogonal...