A Bistochastic Nonparametric Estimator
We 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.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (34) 955 055 210
Fax: (34) 955 055 211
Web page: http://www.centrodeestudiosandaluces.es
More information through EDIRC
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.:
- Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, vol. 64(1), pages 77-101, January.
- 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.
- 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.
- Delgado, Miguel A & Miles, Daniel, 1997. "Household Characteristics and Consumption Behaviour: A Nonparametric Approach," Empirical Economics, Springer, vol. 22(3), pages 409-29.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:cea:doctra:e2004_22. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Susana Mérida)
If references are entirely missing, you can add them using this form.