Overview

ordinary least squares


Show Summary Details

Quick Reference

(OLS)

The simplest linear regression technique. OLS involves fitting a linear equation with the coefficients chosen to minimize the sum of squares of residual errors. In estimating systems of simultaneous equations, where the left-hand variable of each equation appears as a right-hand variable in others, OLS produces biased results, and is replaced by two-stage least squares, or more sophisticated methods of estimation.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.