A Latent Budget Analysis Approach to Classification: Examples from Economics
AbstractLatent budget analysis is a classification technique that allows clustering identification by using compositional data. This paper presents examples of how this technique deals with the unit-sum constraint by establishing an initial independence model to which subsequent models are compared in terms of their relative fitness degree. In fact, latent budget analysis does not impose linearity, homogeneity, or even specific distributions on data. Results help to understand some important relationships between capital stock composition and income or food diet composition in a heterogeneous sample of countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 12569.
Date of creation: 15 Sep 2005
Date of revision:
Latent budget analysis; compositional data; food composition; capital composition;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
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- Mooijaart, Ab & van der Heijden, Peter G. M. & van der Ark, L. Andries, 1999. "A least squares algorithm for a mixture model for compositional data," Computational Statistics & Data Analysis, Elsevier, vol. 30(4), pages 359-379, June.
- Juan Manuel Larrosa, 2003. "A Compositional Statistical Analysis of Capital per Worker," Macroeconomics 0301006, EconWPA.
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