Library of Methods and Models > Regression Models > Linear Regression > Linear Regression Calculation Methods > Instrumental Variables Estimation
Instrument variables method is a generalization of standard least-squares method. The following formula is used for coefficient estimation:
Where:
. Estimated coefficients.
. Dependent variable (output).
. Independent variables matrix (factors).
. Instrumental variables matrix.
See also:
Linear Regression | Modeling Container: The Linear Regression (Instrumental Variables Estimation) Model | IModelling.Tsls
