A Bistochastic Nonparametric Estimator
AbstractWe explore the relevance of adopting a bistochastic nonparametric estimator. This estimator has two main implications. First, the estimator reduces variability according to the robust criterion of second-order stochastic (and Lorenz) dominance. This is a universally criterion in risk and welfare economics, which expands the applicability of nonparametric estimation in economics, for instance to the measurement of economic discrimination. Second, the bistochastic estimator produces smaller errors than do positive-weights nonparametric estimators, in terms of the bias-variance trade-off. This result is verified in a general simulation exercise. This improvement is due to a significant reduction in boundary bias, which makes the estimator itself useful in empirical applications. Finally, consistency, preservation of the mean value, and multidimensional extension are some other useful properties of this estimator.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/22.
Length: 28 pages
Date of creation: 2004
Date of revision:
nonparametric estimation; second-order stochastic dominance; bistochastic estimator;
Find related papers by JEL classification:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-09 (All new papers)
- NEP-ECM-2004-05-09 (Econometrics)
- NEP-GEO-2004-05-09 (Economic Geography)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Juan Gabriel Rodríguez & Rafael Salas & Irene Perrote, 2004.
"Partial Horizontal Inequity Orderings: A non-parametric Approach,"
Economic Working Papers at Centro de Estudios Andaluces
E2004/01, Centro de Estudios Andaluces.
- Juan Gabriel Rodríguez & Rafael Salas & Irene Perrote, 2005. "Partial Horizontal Inequity Orderings: A Non-parametric Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 347-368, 06.
- Diebold, Francis X. & Nason, James A., 1990.
"Nonparametric exchange rate prediction?,"
Journal of International Economics,
Elsevier, vol. 28(3-4), pages 315-332, May.
- Delgado, Miguel A & Miles, Daniel, 1997. "Household Characteristics and Consumption Behaviour: A Nonparametric Approach," Empirical Economics, Springer, vol. 22(3), pages 409-29.
- Bertschek, Irene & Entorf, Horst, 1996. "On Nonparametric Estimation of the Schumpeterian Link between Innovation and Firm Size: Evidence from Belgium, France, and Germany," Empirical Economics, Springer, vol. 21(3), pages 401-26.
- Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
- Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, vol. 64(1), pages 77-101, January.
- Jean-Yves Duclos & Peter J. Lambert, 2000. "A normative and statistical approach to measuring classical horizontal inequity," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 87-113, February.
- Juan Prieto-Rodríguez & Víctor Fernández-Blanco, 2006.
"Optimal pricing and grant policies for museums,"
Journal of Cultural Economics,
Springer, vol. 30(3), pages 169-181, December.
- Juan Prieto-Rodriguez & Victor Fernandez-Blanco, 2003. "Optimal Pricing And Grant Policies For Museums," Public Economics 0309002, EconWPA.
- Juan Prieto Rodríguez & Víctor Fernández Blanco, . "Optimal Pricing And Grant Policies For Museums," Working Papers 3-02 Classification-JEL :, Instituto de Estudios Fiscales.
- Juan Prieto-Rodríguez & Rafael Salas & Santiago Álvarez-García, .
"The Evolution Of Income Inequality In The European Union,"
10-02 Classification-JEL , Instituto de Estudios Fiscales.
- Santiago Alvarez-Garcia & Juan Prieto-Rodriguez & Rafael Salas, 2003. "The evolution of income inequality in the European Union," Public Economics 0309003, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Teresa Rodríguez).
If references are entirely missing, you can add them using this form.