Modified-likelihood estimation of the β-model

Koen Jochmans

SciencePo Working papers from HAL

Abstract: We consider point estimation and inference based on modifications of the profile likelihood in models for dyadic interactions between agents featuring n agent-specific parameters. This setup covers the b-model of network formation and generalizations thereof. The maximum-likelihood estimator of such models has bias and standard deviation of O(n−1) and so is asymptotically biased. Estimation based on modified likelihoods leads to estimators that are asymptotically unbiased and likelihood-ratio tests that exhibit correct size. We apply the modifications to versions of the b-model for network formation and of the Bradley-Terry model for paired comparisons.

Keywords: Paired comparisons; Modified profile likelihood; fixed effects; Bradley-Terry model; β-model; Asymptotic bias; Matching; Network formation; Undirected random graph (search for similar items in EconPapers)
Date: 2016-02-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03393203
References: Add references at CitEc
Citations:

Downloads: (external link)
https://sciencespo.hal.science/hal-03393203/document (application/pdf)

Related works:
Working Paper: Modified-likelihood estimation of the β-model (2016)
Working Paper: Modified-likelihood estimation of the β-model (2016)
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:hal:wpspec:hal-03393203

Access Statistics for this paper

More papers in SciencePo Working papers from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics (guillaume.sarratdetramezaigues@sciences-po.org).