IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v127y2015icp1-5.html
   My bibliography  Save this article

Incorporating prior information when true priors are unknown: An Information-Theoretic approach for increasing efficiency in estimation

Author

Listed:
  • Henderson, Heath
  • Golan, Amos
  • Seabold, Skipper

Abstract

We develop a new way to incorporate prior information within an Information-Theoretic (IT) estimation framework. The estimator considers many potential priors and uses a simple statistic to choose the optimal solution. Our method outperforms its competitors for all finite data.

Suggested Citation

  • Henderson, Heath & Golan, Amos & Seabold, Skipper, 2015. "Incorporating prior information when true priors are unknown: An Information-Theoretic approach for increasing efficiency in estimation," Economics Letters, Elsevier, vol. 127(C), pages 1-5.
    • Handle: RePEc:eee:ecolet:v:127:y:2015:i:c:p:1-5
    DOI: 10.1016/j.econlet.2014.12.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176514004753
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2014.12.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    2. Golan, Amos, 2008. "Information and Entropy Econometrics — A Review and Synthesis," Foundations and Trends(R) in Econometrics, now publishers, vol. 2(1–2), pages 1-145, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hyeok Lee & Yong Kyun Kim, 2018. "The effects of external shocks on the Korean economy: CGE model-based analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giuseppe Ragusa, 2011. "Minimum Divergence, Generalized Empirical Likelihoods, and Higher Order Expansions," Econometric Reviews, Taylor & Francis Journals, vol. 30(4), pages 406-456, August.
    2. Clara Cicatiello & Luca Secondi & Ludovica Principato, 2019. "Investigating Consumers’ Perception of Discounted Suboptimal Products at Retail Stores," Resources, MDPI, vol. 8(3), pages 1-10, July.
    3. Enrico Ciavolino & Antonio Calcagnì, 2014. "A generalized maximum entropy (GME) approach for crisp-input/fuzzy-output regression model," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3401-3414, November.
    4. Laureti, Tiziana & Secondi, Luca & Biggeri, Luigi, 2014. "Measuring the efficiency of teaching activities in Italian universities: An information theoretic approach," Economics of Education Review, Elsevier, vol. 42(C), pages 147-164.
    5. Rosa Bernardini Papalia & Esteban Fernandez-Vazquez, 2018. "Information theoretic methods in small domain estimation," Econometric Reviews, Taylor & Francis Journals, vol. 37(4), pages 347-359, April.
    6. Luca Secondi, 2019. "Expiry Dates, Consumer Behavior, and Food Waste: How Would Italian Consumers React If There Were No Longer “Best Before” Labels?," Sustainability, MDPI, vol. 11(23), pages 1-15, December.
    7. Heath Henderson, 2014. "Structural transformation and smallholder agriculture: an information-theoretic analysis of the Nicaraguan case," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 443-458, July.
    8. Giacomini, Raffaella & Ragusa, Giuseppe, 2014. "Theory-coherent forecasting," Journal of Econometrics, Elsevier, vol. 182(1), pages 145-155.
    9. repec:lrk:lrkwkp:fiirs016 is not listed on IDEAS
    10. Miguel Henry & George Judge, 2019. "Permutation Entropy and Information Recovery in Nonlinear Dynamic Economic Time Series," Econometrics, MDPI, vol. 7(1), pages 1-16, March.
    11. Hyeok Lee & Yong Kyun Kim, 2018. "The effects of external shocks on the Korean economy: CGE model-based analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-14, December.
    12. Wang, Yafeng & Graham, Brett, 2009. "Generalized Maximum Entropy estimation of discrete sequential move games of perfect information," MPRA Paper 21331, University Library of Munich, Germany.
    13. Arndt, Channing & Simler, Kenneth R., 2005. "Estimating utility-consistent poverty lines," FCND briefs 189, International Food Policy Research Institute (IFPRI).
    14. Wobst, Peter & Arndt, Channing, 2004. "HIV/AIDS and Labor Force Upgrading in Tanzania," World Development, Elsevier, vol. 32(11), pages 1831-1847, November.
    15. Nicole Branger, 2004. "Pricing Derivative Securities Using Cross-Entropy: An Economic Analysis," International Journal of Theoretical and Applied Finance (IJTAF), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 63-81.
    16. Amos Golan & Enrico Moretti & Jeffrey M.Perloff, 2004. "A Small-Sample Estimator for the Sample-Selection Model," Econometric Reviews, Taylor & Francis Journals, vol. 23(1), pages 71-91.
    17. Golan, Amos & Karp, Larry S & Perloff, Jeffrey M, 2000. "Estimating Coke's and Pepsi's Price and Advertising Strategies," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(4), pages 398-409, October.
    18. Rubiera-Morollón, Fernando & Fernández-Vázquez , Esteban & Aponte-Jaramillo, Elizabeth, 2012. "Estimation and analysis of labor productivity in Spanish cities," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 22, pages 129-151.
    19. You, Liangzhi & Wood, Stanley, 2006. "An entropy approach to spatial disaggregation of agricultural production," Agricultural Systems, Elsevier, vol. 90(1-3), pages 329-347, October.
    20. Golan, Amos & Perloff, Jeffrey M. & Wu, Ximing, 2001. "Welfare Effects of Minimum Wage and Other Government Policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt0gb7h58q, Department of Agricultural & Resource Economics, UC Berkeley.
    21. Wu, Ximing & Perloff, Jeffrey M., 2004. "China's Income Distribution Over Time: Reasons for Rising Inequality," Institute for Research on Labor and Employment, Working Paper Series qt9jw2v939, Institute of Industrial Relations, UC Berkeley.

    More about this item

    Keywords

    Generalized Cross Entropy; Generalized Maximum Entropy; Information; Maximum Entropy; Priors;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:127:y:2015:i:c:p:1-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.