Table 7 Ridge Regression estimates...

Table 7

Ridge Regression estimates

	Minimum	(+1 SE)	(+2 SE)
Lambda	0.0300	0.1212	0.1930
Variable		Coefficients
LGDP	−0.1573	−0.1294	−0.1102
LRAIL	−0.0779	−0.0849	−0.0897
LAIR	−1.3730	−1.3088	−1.2646
Constant	−20.5385	−19.1500	−18.1924
L1 Norm	22.1467	20.6732	19.6568
R-squared	0.9915	0.9912	0.9908

	Minimum	(+1 SE)	(+2 SE)
Lambda	0.0300	0.1212	0.1930
Variable		Coefficients
LGDP	−0.1573	−0.1294	−0.1102
LRAIL	−0.0779	−0.0849	−0.0897
LAIR	−1.3730	−1.3088	−1.2646
Constant	−20.5385	−19.1500	−18.1924
L1 Norm	22.1467	20.6732	19.6568
R-squared	0.9915	0.9912	0.9908

Note(s): Regressor transformation: Standardization by sample. Cross-validation method: K-Fold. Selection measure: Mean Absolute Error (MAE). Random generator: Knuth. Weights type: Inverse Standard Deviation

Source(s): Authors’ elaborations in EViews

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