Multicollinearity in simultaneous equations system: evaluation of estimation performance of two-parameter estimator

Özbay, Nimet; Toker, Selma

doi:10.1007/s40314-018-0628-0

Cited by 8 publications

(5 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The optimal bandwidth was determined on estimated distance from spatial autocorrelation of the dependent variables (PLAND and AI). Explanatory variables input into OLS and the local model need to be free of multicollinearity [61]. To avoid multicollinearity among the variables, variance inflation factor (VIF) can be checked, where VIF values greater than 10 indicate multicollinearity [62].…”

Section: Methodsmentioning

confidence: 99%

Exploring the Dynamics of Urban Greenness Space and Their Driving Factors Using Geographically Weighted Regression: A Case Study in Wuhan Metropolis, China

Yang

Sha

2020

Land

View full text Add to dashboard Cite

Urban greenness plays a vital role in supporting the ecosystem services of a city. Exploring the dynamics of urban greenness space and their driving forces can provide valuable information for making solid urban planning policies. This study aims to investigate the dynamics of urban greenness space patterns through landscape indices and to apply geographically weighted regression (GWR) to map the spatially varied impact on the indices from economic and environmental factors. Two typical landscape indices, i.e., percentage of landscape (PLAND) and aggregation index (AI), which measure the abundance and fragmentation of urban greenness coverage, respectively, were taken to map the changes in urban greenness. As a case study, the metropolis of Wuhan, China was selected, where time-series of urban greenness space were extracted at an annual step from the Landsat collections from Google Earth Engine during 2000–2018. The study shows that the urban greenness space not only decreased significantly, but also tended to be more fragmented over the years. Road network density, normalized difference built-up index (NDBI), terrain elevation and slope, and precipitation were found to significantly correlate to the landscape indices. GWR modeling successfully captures the spatially varied impact from the considered factors and the results from GWR modeling provide a critical reference for making location-specific urban planning.

show abstract

Section: Methodsmentioning

confidence: 99%

Exploring the Dynamics of Urban Greenness Space and Their Driving Factors Using Geographically Weighted Regression: A Case Study in Wuhan Metropolis, China

Yang

Sha

2020

Land

View full text Add to dashboard Cite

show abstract

“…To determine the effectiveness of the methods previously discussed, a worthwhile Monte Carlo simulation is conducted. Monte Carlo techniques are popularly investigated in the simultaneous equations model by the following papers: Wagnar (), Hendry (), Park (), Capps and Grubbs (), Johnston and Dinardo (), Geweke (), Agunbiade (, ), Agunbiade and Iyaniwura (), Özbay and Toker (, ), Toker et al (), and Toker ().…”

Section: Data Analysis and Monte Carlo Designmentioning

confidence: 99%

“…Capps and Grubbs () also examined the RE at first, second and both stages under various levels of multicollinearity. Toker et al (), Özbay and Toker (), Toker (), and Toker and Özbay () have recently used the two‐stage RE and developed other biased estimators resistant to multicollinearity for this model.…”

Section: Introductionmentioning

confidence: 99%

“…In addition, an extensive Monte Carlo simulation experiment will be performed. There are many papers concerning Monte Carlo methods in the literature, including: Wagnar (), Kmenta and Joseph (), Summers (), Quandt (), Cragg (), Parker (), Hendry (), Park (), Johnston (), Capps and Grubbs (), Carlin, Polson, and Stoffer (), Koutsoyiannis (), Agunbiade (, ), Agunbiade and Iyaniwura (), Toker et al (), Özbay and Toker (, ), and Toker ().…”

Section: Introductionmentioning

confidence: 99%

“…Estimation techniques are widely considered in the system of simultaneous equations, while the analysis of predictive performance is rarely discussed. Some papers from the literature based on the issue about estimation and prediction in the simultaneous equations model are Kloek and Mennes (1960), Amemiya (1966), Dhrymes (1973Dhrymes ( , 1974, Hendry (1976), Kadiyala and Nunns (1976), Maasoumi (1978), Vinod and Ullah (1981), Ullah and Srivastava (1988), Amirkhalkhali, Ogwang, Amirkhalkhali, and Rao (1995), Womer, Cantrell, and Mayer (1999), Skeels and Taylor (2014), Toker, Kaçıranlar, and Güler (2018), Özbay and Toker (2018a), and Toker (2018). Even if the prediction of endogenous variable is explored, the average value of this endogenous variable is neglected in these papers.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The effect of target function on the predictive performance of the two‐stage ridge estimator

Toker

Özbay

2019

Journal of Forecasting

Self Cite

View full text Add to dashboard Cite

The main thrust of this study is to consider the problem of simultaneous prediction of actual and average values of the simultaneous equations model through the target function of Shalabh (Bulletin of International Statistical Institute, 1995, 56, 1375–1390). We focus on the predictive performance of the two‐stage ridge estimator with the motivation for eliminating the disorder arising from multicollinearity. An optimal biasing parameter of the two‐stage ridge estimator is derived by a minimization process of prediction mean square error. In addition, an optimal estimator for the weight of observed value in target function is attained theoretically. The results inferred from a numerical example and a Monte Carlo experiment provide a dramatic improvement in the predictive ability of the two‐stage ridge estimator.

show abstract

Investigating the two parameter analysis of Lipovetsky for simultaneous systems

Toker

2018

Stat Papers

View full text Add to dashboard Cite

Multicollinearity in simultaneous equations system: evaluation of estimation performance of two-parameter estimator

Cited by 8 publications

References 15 publications

Exploring the Dynamics of Urban Greenness Space and Their Driving Factors Using Geographically Weighted Regression: A Case Study in Wuhan Metropolis, China

Exploring the Dynamics of Urban Greenness Space and Their Driving Factors Using Geographically Weighted Regression: A Case Study in Wuhan Metropolis, China

The effect of target function on the predictive performance of the two‐stage ridge estimator

Investigating the two parameter analysis of Lipovetsky for simultaneous systems

Contact Info

Product

Resources

About