Volume 37, Issue 2 (March 2009)
A Simple Estimator of Errors-in-Variables Model Using Instrumental Errors Ratio
This paper proposes a new estimator of regression coefficient in a linear model when both variables are observed with errors. Unlike previous estimators, the new estimator fully utilizes instrumental errors ratio (k) available to the experimental researcher. When compared to other estimators, our estimator is easy to use and provides an estimate with less bias. It is also a generalization of existing methods when k takes different values.