NLS versus simple OLS

For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.

Moderators: EViews Gareth, EViews Moderator

oksanakim
Posts: 56
Joined: Wed Apr 04, 2012 10:38 am

NLS versus simple OLS

Postby oksanakim » Tue Sep 12, 2017 10:58 am

Hello

I have a couple of simple questions regarding model specifications. It seems my EViews version was updated to no. 10 (I think) and I noticed some differences in the models spec. When I enter the model spec in the Equation window and click on the Estimation settings window, I see "LS - Least Squares (NLS and ARMA) as the first option. I believe there used to be simple OLS in the place of NLS in the previous versions, correct? So how do I now estimated simple OLS model?

And second, when would one want to use ROBUSTLS option from the Settings list? Thanks very much!!

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13305
Joined: Tue Sep 16, 2008 5:38 pm

Re: NLS versus simple OLS

Postby EViews Gareth » Tue Sep 12, 2017 11:07 am

OLS is covered by the LS option.

If you specify a non-linear model, NLS will be used. If you specify a linear model, OLS will be used.
Follow us on Twitter @IHSEViews

oksanakim
Posts: 56
Joined: Wed Apr 04, 2012 10:38 am

Re: NLS versus simple OLS

Postby oksanakim » Tue Sep 12, 2017 11:09 am

Thank you! How about ROBUSTLS option? When would this one be used? In the case of a linear model, what is the advantage of using this option?

oksanakim
Posts: 56
Joined: Wed Apr 04, 2012 10:38 am

Re: NLS versus simple OLS

Postby oksanakim » Tue Sep 12, 2017 12:35 pm

And a related question: in the Binary estimation settings, how do I know when to use "extreme values" model and if it would be preferred to Probit and Logit specifications. Thank you.


Return to “Estimation”

Who is online

Users browsing this forum: No registered users and 36 guests