Standard Errors of coefficients

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PoachedWonk
Posts: 11
Joined: Sun May 17, 2015 6:18 am

Standard Errors of coefficients

Postby PoachedWonk » Fri Jun 19, 2015 2:09 am

Hello,

I have estimated a system of equations and got the results. One of the values I take is the inverse of a coefficient, so I calculate the value by 1/c(2) to get the value im interested in. However, doing this with the standard error to measure significance creates an implauisibly large s.e., is this the correct s.e. value?

Thanks!

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: Standard Errors of coefficients

Postby startz » Fri Jun 19, 2015 6:28 am

No. You need to look up the "delta method." Or you can use EViews directly to test 1/c(2) = 0.


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