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Mathematics, 19.02.2020 23:35 stepromero01

Partition matrices: Consider using a partition matrix in OLS. That is, consider X = [X1,X2] and = 1 2 where X1 is n ร— r1, X1 is n ร— r2, 1 is r1 ร— 1, 2 is r2 ร— 1, and r1 + r2 = r, the overall number of columns in X. When we take the inverse of a 2 ร— 2 partition matrix A B C D โˆ’1 = (A โˆ’ BCโˆ’1D)โˆ’1 โˆ’(A โˆ’ BDโˆ’1C)โˆ’1BDโˆ’1 โˆ’(D โˆ’ CAโˆ’1B)โˆ’1CAโˆ’1 (D โˆ’ CAโˆ’1B)โˆ’1 Find the equations for ห† 1 and ห† 2 using the OLS estimator ห† = (X0X)โˆ’1X0y

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Partition matrices: Consider using a partition matrix in OLS. That is, consider X = [X1,X2] and = 1...
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