Arslan, Olcay; Billor, Nedret - In: Journal of Applied Statistics 27 (2000) 1, pp. 39-47
Consider the regression model y = beta 0 1 + Xbeta + epsilon. Recently, the Liu estimator, which is an alternative biased estimator beta L (d) = (X'X + I) -1 (X'X + dI)beta OLS , where 0d1 is a parameter, has been proposed to overcome multicollinearity . The advantage of beta L (d) over the...
