Improve “2SLS” Method by Genetic algorithm with application

Abstract

Abstract This paper explore potential power of Genetic Algorithm for optimization by using new MATLAB, most of the robust methods based on the idea of sacrificing in one side versus promotion another, the artificial intelligence mechanisms try to balance sacrifice and promotion to make the best solutions in a random search technique. In this paper, a new idea was introduced to improve the estimators of parameters of linear simultaneous equation models that resulting from the 2SLS method by using a class of genetic algorithm which called binary genetic algorithm (GA) and better estimates were obtained using two robust different criteria.