The Empirical Trap of Sign Reversals with Equality Restrictions

Datum

2005-01-15

Zeitschriftentitel

ISSN der Zeitschrift

Bandtitel

Verlag

University of Oregon, Dept of Economics

Zusammenfassung

This note explores the insidious empirical trap posed by two common equality restrictions in regression analysis. The trap is that restricted coefficients can lie outside the interval of unrestricted coefficients and even reverse sign when negatively correlated regressors are added to one another or when positively correlated regressors are subtracted from one another.

Beschreibung

11 p.

Schlagwörter

Equality restrictions, Sign reversals, Invalid restrictions

Zitierform