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The two-stage least-squares (2SLS) estimator is known to be biased when its first-stage fit is poor. I show that better first-stage prediction can alleviate this bias. In a two-stage linear regression model with Normal noise, I consider…

Statistics Theory · Mathematics 2017-11-01 Jann Spiess

Subsampling is a popular approach to alleviating the computational burden for analyzing massive datasets. Recent efforts have been devoted to various statistical models without explicit regularization. In this paper, we develop an efficient…

Methodology · Statistics 2022-04-12 Yunlu Chen , Nan Zhang

This paper presents the asymptotic behavior of a linear instrumental variables (IV) estimator that uses a ridge regression penalty. The regularization tuning parameter is selected empirically by splitting the observed data into training and…

Econometrics · Economics 2019-08-27 Nandana Sengupta , Fallaw Sowell

Ridge regression is a popular method for dense least squares regularization. In this work, ridge regression is studied in the context of VAR model estimation and inference. The implications of anisotropic penalization are discussed and a…

Methodology · Statistics 2024-06-21 Giovanni Ballarin

Ridge estimator is an alternative to ordinary least square estimator when there is multicollinearity problem. There are many proposed estimators in literature. In this paper, we propose new estimators which are modifications of the…

Methodology · Statistics 2015-12-10 Yasin Asar , Aşır Genç

When the regressors of a econometric linear model are nonorthogonal, it is well known that their estimation by ordinary least squares can present various problems that discourage the use of this model. The ridge regression is the most…

Stochastic gradient descent (SGD) exhibits strong algorithmic regularization effects in practice, which has been hypothesized to play an important role in the generalization of modern machine learning approaches. In this work, we seek to…

Machine Learning · Computer Science 2022-07-12 Difan Zou , Jingfeng Wu , Vladimir Braverman , Quanquan Gu , Dean P. Foster , Sham M. Kakade

In "Li, L. and Yin, X. (2008). Sliced Inverse Regression with Regularizations. Biometrics, 64(1):124--131" a ridge SIR estimator is introduced as the solution of a minimization problem and computed thanks to an alternating least-squares…

Statistics Theory · Mathematics 2011-04-04 Caroline Bernard-Michel , Laurent Gardes , Stéphane Girard

We compare the risk of ridge regression to a simple variant of ordinary least squares, in which one simply projects the data onto a finite dimensional subspace (as specified by a Principal Component Analysis) and then performs an ordinary…

Machine Learning · Statistics 2013-06-03 Paramveer S. Dhillon , Dean P. Foster , Sham M. Kakade , Lyle H. Ungar

Ridge leverage scores provide a balance between low-rank approximation and regularization, and are ubiquitous in randomized linear algebra and machine learning. Deterministic algorithms are also of interest in the moderately big data…

Statistics Theory · Mathematics 2018-12-27 Shannon R. McCurdy

We develop a Stata command $\texttt{csa2sls}$ that implements the complete subset averaging two-stage least squares (CSA2SLS) estimator in Lee and Shin (2021). The CSA2SLS estimator is an alternative to the two-stage least squares estimator…

Econometrics · Economics 2023-04-06 Seojeong Lee , Siha Lee , Julius Owusu , Youngki Shin

This note develops a simple two-stage least squares (2SLS) procedure to estimate the causal effect of some endogenous regressors on a randomly right censored outcome in the linear model. The proposal replaces the usual ordinary least…

Statistics Theory · Mathematics 2021-10-12 Jad Beyhum

Understanding generalization and estimation error of estimators for simple models such as linear and generalized linear models has attracted a lot of attention recently. This is in part due to an interesting observation made in machine…

Machine Learning · Statistics 2021-03-09 Mojtaba Sahraee-Ardakan , Tung Mai , Anup Rao , Ryan Rossi , Sundeep Rangan , Alyson K. Fletcher

Ridge regression (RR) is a regularization technique that penalizes the L2-norm of the coefficients in linear regression. One of the challenges of using RR is the need to set a hyperparameter ($\alpha$) that controls the amount of…

Methodology · Statistics 2020-05-08 Ariel Rokem , Kendrick Kay

In the presence of confounders, the ordinary least squares (OLS) estimator is known to be biased. This problem can be remedied by using the two-stage least squares (TSLS) estimator, based on the availability of valid instrumental variables…

Methodology · Statistics 2015-04-15 Cedric E. Ginestet , Richard Emsley , Sabine Landau

We propose a two-stage least squares (2SLS) estimator whose first stage is the equal-weighted average over a complete subset with $k$ instruments among $K$ available, which we call the complete subset averaging (CSA) 2SLS. The approximate…

Econometrics · Economics 2026-02-03 Seojeong Lee , Youngki Shin

We establish precise structural and risk equivalences between subsampling and ridge regularization for ensemble ridge estimators. Specifically, we prove that linear and quadratic functionals of subsample ridge estimators, when fitted with…

Statistics Theory · Mathematics 2023-10-19 Pratik Patil , Jin-Hong Du

We consider $L^2$-regularized linear (ridge) regression over a finite data sample $X$ with bounded covariance and linear prediction targets $y$ with additive isotropic noise of finite variance. We present an iterative procedure to compute…

Machine Learning · Computer Science 2026-05-28 Jack Timmermans , Sergio A. Alvarez

Instrumental variables (IV) estimation is a fundamental method in econometrics and statistics for estimating causal effects in the presence of unobserved confounding. However, challenges such as untestable model assumptions and poor finite…

Econometrics · Economics 2024-12-24 Zhaonan Qu , Yongchan Kwon

Model-Implied Instrumental Variable Two-Stage Least Squares (MIIV-2SLS) is a limited information, equation-by-equation, non-iterative estimator for latent variable models. Associated with this estimator are equation specific tests of model…

Methodology · Statistics 2024-04-17 Teague R. Henry , Zachary F. Fisher , Kenneth A. Bollen
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