Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059217 | Economics Letters | 2014 | 5 Pages |
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
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ruichang Lu, Yao Luo, Ruli Xiao,