Full information maximum likelihood (FIML) estimation

By:
Updated: Aug 20, 2021

A method of estimation of nonlinear simultaneous equations models based on the maximization of a likelihood function, subject to the restrictions imposed by the structure. The FIML estimator estimates all the equations and all the unknown parameters jointly and is asymptotically efficient when the errors are normally distributed. See also limited information maximum likelihood estimation.

Reference: Oxford Press Dictonary of Economics, 5th edt.



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.