Implications of the identification state of a model, Game Theory

Assignment Help:

Identification is closely related to the estimation of the model.

If an equation is identified, its coefficient can, in general, be statistically estimated. In particular:

(a) If the equation is exactly identified, the appropriate method to be used for its estimation is the method of indirect least squares.

(b) If the equation is over-identified, indirect least squares cannot be applied, because it will not yield unique estimates of the structural parameters. There are various other methods which can be used in this case, for example two-stage least squares (2SLS), or maximum likelihood methods.


Related Discussions:- Implications of the identification state of a model

Free rider / free riding , The notion that those that don't contribute to s...

The notion that those that don't contribute to some project might nevertheless get pleasure from it (free riders), evidenced in games like the tragedy of the commons and public pro

Pareto coordination game, Scenario Two corporations should simultaneousl...

Scenario Two corporations should simultaneously elect a technology to use for his or her compatible merchandise. If the corporations adopt totally different standards, few sales

Nash equilibrium - pay off, The following is a payoff matrix for a non-coop...

The following is a payoff matrix for a non-cooperative simultaneous move game between 2 players. The payoffs are in the order (Player 1; Player 2): What is the Nash Equilibri

Find the shortest sequence of moves that is to win the game, You and an opp...

You and an opponent are seated at a table, and on the table is a square board. At each of the four corners of the board, there is a disc, each one red on one side and black on the

Cardinal payoffs, Cardinal payoffs are numbers representing the outcomes of...

Cardinal payoffs are numbers representing the outcomes of a game where the numbers represent some continuum of values, such as money, market share or quantity. Cardinal payoffs per

Simultaneous move games with mixed strategies, This chapter introduces mixe...

This chapter introduces mixed strategies and the methods used to solve for mixed strategy equilibria. Students are likely to accept the idea of randomization more readily if they t

Compute pure strategy and mixed strategy equilibria of game, Ronaldo (Brazi...

Ronaldo (Brazil) kicks a penalty against Casillas (Spain) in the 2006 World Cup nal. Sup- pose that Ronaldo can kick the ball to Casillas' upper left (UL), lower left (LL), upper r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd