A Three Line Proof that OLS is BLUE
2 Pages Posted: 4 May 2012
Date Written: April 11, 2012
We provide a three line proof that the Ordinary Least Squares estimator is the (conditionally) best linear unbiased estimator.
Keywords: efficiency, Gauss-Markov, OLS estimator
JEL Classification: C01, C13
Suggested Citation: Suggested Citation