# two-stage least squares

## Definitions

### Economics

- noun a way of using
__simultaneous equations__ in econometric procedures by which right-hand variables are replaced by the result of their own equations. This gives a more accurate result than simply running the equations normally. The two stages referred to are firstly, the creation of new dependent variables to replace the originals, and secondly, regression calculated as normal but using the new variables.

### Health Economics

http://www.dictionarycentral.com/definition/two-stage-least-squares.html