How Do I Run RIDGE REGRESSION IN EViews?

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John C Frain

Chapter 37 of the ver 12 Eviews manual gives details. I have not used Eviews for many years and can not help with any details. The topic is a little more complicated in any package than running an OLS but the treatment in the manual is reasonably clear.

Chuck A Arize

Install EViews,

Open it and load your data.
Click on 'Quick' and select 'Estimate Equation'.
Select 'Ridge Regression' from the list of estimation.
Choose dependent and independent variables.
set the value of the ridge parameter.
click on OK to run the regression.