In econometrics, while using Newton Raphson algorithm, why do we use 2nd Order Taylor Expansion, what is the requirement or intiution behind it? Is it something related to convergence issue? Can someone show analytically?
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1What do you mean? Is Newton-Raphson in econometrics different from the mathematical Newton-Raphson method? The method I know does not "use" a Taylor expansion, though the usual proof of quadratic convergence relies on one. What exactly do you want us to "show analytically"? – Robert Israel May 29 '19 at 15:57
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Actually i want to show quadratic convergence of NR method – H. Kaya May 30 '19 at 08:29
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