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Comparing Latent Subgroups

In: Multilateral Wellbeing Comparison in a Many Dimensioned World

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  • Gordon Anderson

    (University of Toronto)

Abstract

Frequently, the groupings of interest in a society are not directly observed; they are latent and unknown in number. In this chapter, a technique for determining the number of groups and partially determining an agents’ group membership is explored. The determination is partial in the sense that only the probability of an individual’s membership of a group can be determined. The technique is based upon mixture distributions, for which a good reference is McLachlan and Peel (Finite Mixture Models. Wiley, New York, 2000). After outlining the nature of mixture distributions, estimation, calculation of the probability of class membership and determining the optimal number of classes are discussed. Ultimately, possibilities for examining the determinants of group membership are outlined.

Suggested Citation

  • Gordon Anderson, 2019. "Comparing Latent Subgroups," Global Perspectives on Wealth and Distribution, in: Multilateral Wellbeing Comparison in a Many Dimensioned World, chapter 0, pages 135-151, Palgrave Macmillan.
    • Handle: RePEc:pal:gpochp:978-3-030-21130-1_5
    DOI: 10.1007/978-3-030-21130-1_5
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