Prove the result that the R 2 associated with a restricted least squares estimator is never larger

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Prove the result that the R² associated with a restricted least squares estimator is never larger than that associated with the unrestricted least squares estimator. Conclude that imposing restrictions never improves the fit of the regression.

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Econometric Analysis

ISBN: 978-0131395381

7th edition

Authors: William H. Greene

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Question Posted: Nov 15, 2018 06:46 AM

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Prove the result that the R 2 associated with a restricted least squares estimator is never larger

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The result follows immediately from the re...View the full answer

Econometric Analysis

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