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A constrained least squares method for estimating the effects of an unknown monotonically intervening factor

✍ Scribed by Dr Sten Thore


Publisher
John Wiley and Sons
Year
1989
Tongue
English
Weight
584 KB
Volume
8
Category
Article
ISSN
0277-6693

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✦ Synopsis


A constrained least squares method is developed for the estimation of the effects of an unknown intervening causal factor in regression analysis, when the unknown factor shifts the regression hyperplane monotonically upwards (downwards) over time. As an illustration, we estimate the price elasticity of cigarettes in the USA and the systematic shifts of the demand curve for cigarettes during the time period 1964-86 (these shifts presumably reflecting the heightened awareness of the general public of the potential dangers of smoking).