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- W2319399612 abstract "WHEN THE METHOD of Simultaneous Least Squares (SLS) was being processed for publication [1], it was pointed out by Professor H. Theil that the estimates would not be invariant to general transformations of the variables. He drew this conclusion by analogy from the theory of orthogonal regression. A very common transformation in econometric work is to change the units in which the variables are measured. This is known as scaling the data. The purpose of making such changes is to bring the values of the variables to such a size that maximum computational accuracy can be expected. (See Klein [4, (145-6)], Chernoff and Divinsky [3, (239)], and Goldberger [2, (185-6)].) Clearly it is desirable that an econometric method possess the property of invariance to changes of units or scale. The purpose of this note is to analyze briefly the meaning of such invariance and to present a simple change in the definition of SLS, such that the new SLS is invariant to scaling." @default.
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- W2319399612 date "1967-02-01" @default.
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- W2319399612 title "Simultaneous Least Squares and Invariance Under Changes of Units of Measurement" @default.
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- W2319399612 doi "https://doi.org/10.2307/2525385" @default.
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