Abstract

This study compares the simulation performance of an operational econometric model of the Nigerian economy. Five estimators namely OLS, 2SPC₄, 2SPC₆ and 2SPC₈ were used to obtain consistent estimators of the structural parameters in an econometric model of the Nigerian economy when some of the equations are non-linear but intrinsically linear. The performance of the estimators was ranked using Friedman’s test statistics based on four criteria namely, root mean square error (RMSE), Theils inequality coefficients, bias and variance proportions. The result of this ranking show that 2SPC₆ and 2SPC₈ emerged as the best estimators. The least preferred estimators were the OLS and 2SPC₄ in that order.

Key words: Intrinsically linear model, non-linear, econometric, Friedman test statistic, root mean square error.