The solve() function is useful to solve the system of equation, Ax = b. In addition to

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The solve() function is useful to solve the system of equation, Ax = b.

In addition to solve(), functions like backsolve() and forwardsolve() are more efficient when A is upper triangular and lower triangular, respectively.

Consider the least squares estimator in linear regression models, , which is the solution to the equation,

Apply the LU factorization on , and use backsolve() and forwardsolve() to recover the least squares estimator displayed below.

> data (mpg, package ggplot2)> coef (fit <- Im(hwy - cty + class, data =mpg))classmidsize-1.126817classminivan-2.8873

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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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Posted Date: Nov 21, 2022 11:56 PM

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Public Finance and Public Policy

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