An MPEC estimator for misclassification models

Ruichang Lu, Yao Luo and Ruli Xiao

Economics Letters, 2014, vol. 125, issue 2, 195-199

Abstract: In this paper, we propose a constrained maximum likelihood estimator for misclassification models, by formulating the estimation as an MPEC (Mathematical Programming with Equilibrium Constraints) problem. Our approach improves the numerical accuracy and avoids the singularity problem. Monte Carlo simulations confirm that the proposed estimator reduces bias and standard deviation of the estimator, especially when the sample is small/medium and/or the dimension of latent variable is large.

Keywords: Mathematical Programming with Equilibrium Constraints (MPEC); Misclassification models; Nonparametric estimation (search for similar items in EconPapers)
JEL-codes: C14 C6 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:125:y:2014:i:2:p:195-199

DOI: 10.1016/j.econlet.2014.08.031

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