
doi: 10.1007/bf00435200
Two elements enter the choice between 2 and 3SLS for full-system estimation: statistical efficiency and computational cost. 2SLS always has the computational edge, but 3SLS can be more efficient, a relative advantage that increases with the strength of the interrelations among the error terms. A measure of these interrelations is thus helpful in making the choice, and, when there are only two equations, this has suggested using a high pairwise error correlation as an indicator of when to use 3SLS. In larger systems of equations, however, these pairwise correlations can remain small even though more general interrelations give 3SLS the relative advantage. More general indicators are therefore needed, and this paper suggests three such and demonstrates their efficacy.
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 66 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Top 10% | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Top 10% | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
