A Bistochastic Nonparametric Estimator

Juan Rodríguez and Rafael Salas

No E2004/22, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: 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.

Keywords: nonparametric estimation; second-order stochastic dominance; bistochastic estimator (search for similar items in EconPapers)
JEL-codes: C68 D58 R13 R15 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2004
New Economics Papers: this item is included in nep-ecm and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://public.centrodeestudiosandaluces.es/pdfs/E200422.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to public.centrodeestudiosandaluces.es:80 (nodename nor servname provided, or not known)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2004_22

Access Statistics for this paper

More papers in Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces c/ Bailén 50. 41001 Sevilla. Contact information at EDIRC.
Bibliographic data for series maintained by Susana Mérida ( this e-mail address is bad, please contact ).