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Flexible shrinkage in high-dimensional Bayesian spatial autoregressive models

Michael Pfarrhofer, Philipp Piribauer

arXiv 28 May 2018 · Econometrics

arXiv:1805.10822 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This article introduces two absolutely continuous global-local shrinkage priors to enable stochastic variable selection in the context of high-dimensional matrix exponential spatial specifications. Existing approaches as a means to dealing with overparameterization problems in spatial autoregressive specifications typically rely on computationally demanding Bayesian model-averaging techniques. The proposed shrinkage priors can be implemented using Markov chain Monte Carlo methods in a flexible and efficient way. A simulation study is conducted to evaluate the performance of each of the shrinkage priors. Results suggest that they perform particularly well in high-dimensional environments, especially when the number of parameters to estimate exceeds the number of observations. For an empirical illustration we use pan-European regional economic growth data.

Citation extraction

33
references
90
in-text mentions
33
distinct cited
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8,283
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bhattacharya et al (2015) Dirichlet-Laplace priors for optimal shrinkage1.000114100%
2LeSage and Pace (2007) A matrix exponential spatial specification1.00095100%
3LeSage and Pace (2009) Introduction to spatial econometrics1.00073100%
4George and McCulloch (1993) Variable selection via Gibbs sampling0.9285380%
5Piribauer and Fischer (2015) Model uncertainty in matrix exponential spatial growth regression models0.92843100%
6Koop (2003) Bayesian econometrics0.92843100%
7Griffin and Brown (2010) Inference with normal-gamma prior distributions in regression problems0.87452100%
8Piribauer and Crespo Cuaresma (2016) Bayesian variable selection in spatial autoregressive models0.8434475%
9Piribauer (2016) Heterogeneity in spatial growth clusters self0.8434375%
10Park and Casella (2008) The Bayesian Lasso0.81142100%

Showing the top 10 of 33 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Bayesian shrinkage in mixture of experts models: Identifying robust determinants of class membership0.40511