Dear HC On 30 June 2013 18:53, hck <hans-christian.krumh...@uni-ulm.de> wrote: > Generally I would have the following equations X_i = IV3_i + IV4_i * Y_i > applying for every company (i). In a first step, I am interested in > estimating the relationship between X and Y: Y_i = a + b * X_i + u to > ultimatly estimate X_i by substituting the Y_i and solving for X_i to be > able to estimate the X_i by just IV3_i, IV4_i, and the a and b. > > Now, let's construct values from a sample of listed companies. In the > capital market, I can observe IV3_i, IV4_i, and X_i. With these I calculate > Y_i: Y_i = IV1_i + IV2_i * X_i (note: IV3 and IV4 are just a transformation > of IV1 and IV2). Of course, I could rewrite this equation as Y_i = c + d * > IV1_i + e * IV2_i * X_i + v. For a couple of observations, I have now > combinations of X_i and Y_i to get the a and b coefficient by estimating Y_i > = a + b * X_i + u.
It seems to me that this estimation is very simple: myModel <- lm( Y ~ X ) but perhaps I did not completely understand your model specification. Best, Arne -- Arne Henningsen http://www.arne-henningsen.name ______________________________________________ R-help@r-project.org mailing list https://stat.ethz.ch/mailman/listinfo/r-help PLEASE do read the posting guide http://www.R-project.org/posting-guide.html and provide commented, minimal, self-contained, reproducible code.
