Figure 3. Ratio of MSE of proposed estimate (varies by p) to MSE of original estimate
| Variance of idiosyncratic CES error |
p = 0 |
p = 0.01 |
p = 0.1 |
p = 0.5 |
p = 1 |
|
0.00001
|
0.204288 |
0.213588 |
0.294853 |
0.653895 |
1.102035 |
|
0.00002
|
0.204267 |
0.213561 |
0.294815 |
0.653866 |
1.101813 |
|
0.00003
|
0.204315 |
0.213606 |
0.294855 |
0.653910 |
1.101784 |
|
0.00004
|
0.204300 |
0.213590 |
0.294824 |
0.653785 |
1.101692 |
|
0.00005
|
0.204290 |
0.213585 |
0.294814 |
0.653770 |
1.101664 |
|
0.00006
|
0.204308 |
0.213605 |
0.294846 |
0.653758 |
1.101594 |
|
0.00007
|
0.204215 |
0.213508 |
0.294745 |
0.653639 |
1.101447 |
|
0.00008
|
0.204246 |
0.213538 |
0.294775 |
0.653639 |
1.101449 |
|
0.00009
|
0.204202 |
0.213494 |
0.294728 |
0.653597 |
1.101359 |
|
0.00010
|
0.204204 |
0.213496 |
0.294730 |
0.653582 |
1.101327 |
|
0.00025
|
0.204190 |
0.213481 |
0.294694 |
0.653480 |
1.101537 |
|
0.00050
|
0.204190 |
0.213463 |
0.294670 |
0.653546 |
1.101366 |
|
0.00075
|
0.204139 |
0.213415 |
0.294603 |
0.653419 |
1.101524 |
|
0.00100
|
0.204116 |
0.213410 |
0.294581 |
0.653386 |
1.101466 |
|
0.00125
|
0.204176 |
0.213460 |
0.294605 |
0.653385 |
1.101581 |
|
0.00150
|
0.204250 |
0.213541 |
0.294654 |
0.653534 |
1.101315 |
|
0.00175
|
0.204008 |
0.213292 |
0.294419 |
0.653255 |
1.101204 |
|
0.00200
|
0.203948 |
0.213211 |
0.294350 |
0.653216 |
1.101366 |
|
0.00225
|
0.203975 |
0.213256 |
0.294402 |
0.653313 |
1.101445 |
|
0.00250
|
0.203935 |
0.213202 |
0.294353 |
0.653276 |
1.101437 |
|
0.00275
|
0.203864 |
0.213140 |
0.294315 |
0.653062 |
1.101354 |
|
0.00300
|
0.203787 |
0.213073 |
0.294241 |
0.653030 |
1.101368 |
|
0.00325
|
0.203804 |
0.213083 |
0.294250 |
0.653086 |
1.101368 |
|
0.00350
|
0.203812 |
0.213082 |
0.294240 |
0.653140 |
1.101335 |
|
0.00375
|
0.203795 |
0.213068 |
0.294198 |
0.653077 |
1.101293 |
|
0.00400
|
0.203949 |
0.213209 |
0.294330 |
0.653355 |
1.101400 |