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Nonparametric maximum likelihood methods for binary response models with random coefficients

Jiaying Gu, Roger Koenker

arXiv 8 Nov 2018 · Econometrics · publishedJournal of the American Statistical Association (2020) · 7 citations (OpenAlex)

arXiv:1811.03329 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Single index linear models for binary response with random coefficients have been extensively employed in many econometric settings under various parametric specifications of the distribution of the random coefficients. Nonparametric maximum likelihood estimation (NPMLE) as proposed by Cosslett (1983) and Ichimura and Thompson (1998), in contrast, has received less attention in applied work due primarily to computational difficulties. We propose a new approach to computation of NPMLEs for binary response models that significantly increase their computational tractability thereby facilitating greater flexibility in applications. Our approach, which relies on recent developments involving the geometry of hyperplane arrangements, is contrasted with the recently proposed deconvolution method of Gautier and Kitamura (2013). An application to modal choice for the journey to work in the Washington DC area illustrates the methods.

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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
1Cosslett (1983) Distribution-free maximum likelihood estimator of the binary choice model1.00085100%
2Gautier and Kitamura (2013) Nonparametric estimation in random coefficients binary choice models1.00083100%
3Kiefer and Wolfowitz (1956) Consistency of the Maximum Likelihood Estimator in the Presence of Infinitely Many Incidental Parameters1.00054100%
4Ichimura and Thompson (1998) Maximum likelihood estimation of a binary choice model with random coefficients of unknown distribution1.00053100%
5Klein and Spady (1993) An Efficient Semiparametric Estimator for Binary Response Models0.84333100%
6Horowitz (1993) Semiparametric estimation of a work-trip mode of choice model0.73732100%
7Koenker and Mizera (2014) Convex Optimization, Shape Constraints, Compound Decisions and Empirical Bayes Rules0.73732100%
8Groeneboom and Jongbloed (2014) Nonparametric Estimation under Shape Constraints: Estimators, Algorithms and Asymptotics0.64422100%
9Hayfield and Racine (2008) Nonparametric Econometrics: The np package0.64422100%
10Edelsbrunner, Seidel, and Sharir (1993) On the zone theorem for hyperplane arrangements0.5112250%

Showing the top 10 of 39 scored citations.

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

Citing paperIntensityMentionsSections
1Partial Identification in Nonseparable Binary Response Models with Endogenous Regressors We are grateful to James Heckman, Marc Henry, Roger Koenker, and to seminar audiences at Columbia University and Michigan State University for helpful feedback. We also thank Martin Weidner and the organizers of the Chamberlain Seminar, and are grateful to Florian Gunsilius, Sukjin Han, Wayne Gao, and Takuya Ura for their questions and feedback, and to Adam Rosen for his thoughtful discussion. Jiaying Gu acknowledges financial support from the Social Sciences and Humanities Research Council of Canada. All errors are our own0.874102
2Bandit Algorithms for Policy Learning: Methods, Implementation, and Welfare-performance0.64422
3Finite Sample Inference for the Maximum Score Estimand0.58531