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A Semi-Parametric Basis for Combining Estimation Problems Under Quadratic Loss

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Author Info
George Judge (University of California, Berkeley and Giannini Foundation)
Ron Mittelhammer (Washington State University)

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Abstract

When there is uncertainty concerning the appropriate statistical model to use in representing the data sampling process and corresponding estimators, we consider a basis for optimally combining estimation problems. In the context of the multivariate linear statistical model, we consider a semi-parametric Stein-like (SPSL) estimator, B( ), that shrinks to a random data-dependent vector and, under quadratic loss, has superior performance relative to the conventional least squares estimator. The relationship of the SPSL estimator to the family of Stein estimators is noted and risk dominance extensions between correlated estimators are demonstrated. As an application we consider the problem of a possibly ill-conditioned design matrix and devise a corresponding SPSL estimator. Asymptotic and analytic finite sample risk properties of the estimator are demonstrated. An extensive sampling experiment is used to investigate finite sample performance over a wide range of data sampling processes to illustrate the robustness of the estimator for an array of symmetric and skewed distributions. Bootstrapping procedures are used to develop confidence sets and a basis for inference.

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Paper provided by Department of Agricultural & Resource Economics, UC Berkeley in its series Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series with number 948.

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Date of creation: 01 Jan 2003
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Handle: RePEc:cdl:agrebk:948

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Related research
Keywords: Stein-like shrinkage quadratic loss ill-conditioned design semiparametric estimation and inference data dependent shrinkage vector asymptotic and finite sample risk

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  1. Tae-Hwan Kim & Halbert White, 2000. "James-Stein Type Estimators in Large Samples with Application to the Least Absolute Deviations Estimator," University of California at San Diego, Economics Working Paper Series 99-04r, Department of Economics, UC San Diego. [Downloadable!]
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  1. George Judge & Ron Mittelhammer, 2004. "Estimating the Link Function in Multinomial Response Models under Endogeneity and Quadratic Loss," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 970, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
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