Indirect least squares

From Wikipedia, the free encyclopedia

This article is orphaned as few or no other articles link to it. Please help introduce links in articles on related topics. (January 2008)

This article does not cite any references or sources. (January 2008) Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed.

Indirect least squares is an approach in econometrics where the coefficients in a system of equations are estimated from the reduced form model using ordinary least squares. For this we have to transform the structural system of equations into a reduced form first. Once the coefficients are estimated the model is put back into the structural form.