The pillar will apply a method co-developed by the PI for two-stage least squares estimation (Econometrica (80(6), 2369-2429, 2012) that exploits judicial characteristics as instrumental variables.

Specifically, we compare two-stage least squares (2SLS) on costs and the natural log of costs (log-2SLS), CF methods in the context of generalized linear models employing the Gamma family of distributions, including the specific case of 2SRI, and a parametric model of Gamma distributed costs estimated using FIMSL.

Kelejian and Prucha's (1998, 1999, 2004) theoretical work suggests the following generalized spatial two-stage least squares (GS2SLS) procedure, consisting of three steps.

Grace, Klein, and Kleindorfer estimate the demand for homeowners insurance in Florida and New York using two-stage least squares regression with the Insurance Services Office's indicated loss costs as their proxy for the quantity of real insurance services demanded.

We do, however, provide two-stage least squares e stimates (see Table 2) because recursive estimation (by OLS) is the correct procedure only if the system of equations presented above is the true system.

In this second model, we use a two-stage least squares (2SLS) method to address potential endogeneity issues.

A critical condition for using two-stage least squares regression in correlational studies is a clear theoretical model that specifies the presumed relationships among factors (Intriligator, 1978).

bt], ordinary least squares estimation is inappropriate, but two-stage least squares can be performed using the set Z = {[Delta] [x.