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Testing the Order of Multivariate Normal Mixture Models

Hiroyuki Kasahara, Katsumi Shimotsu

arXiv 8 Feb 2019 · Mathematics — Statistics Theory · 1 citations (OpenAlex)

arXiv:1902.02920 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Finite mixtures of multivariate normal distributions have been widely used in empirical applications in diverse fields such as statistical genetics and statistical finance. Testing the number of components in multivariate normal mixture models is a long-standing challenge even in the most important case of testing homogeneity. This paper develops likelihood-based tests of the null hypothesis of $M_0$ components against the alternative hypothesis of $M_0 + 1$ components for a general $M_0 \geq 1$. For heteroscedastic normal mixtures, we propose an EM test and derive the asymptotic distribution of the EM test statistic. For homoscedastic normal mixtures, we derive the asymptotic distribution of the likelihood ratio test statistic. We also derive the asymptotic distribution of the likelihood ratio test statistic and EM test statistic under local alternatives and show the validity of parametric bootstrap. The simulations show that the proposed test has good finite sample size and power properties.

Citation extraction

37
references
81
in-text mentions
37
distinct cited
2
self-citations
14,138
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
1Chen, J. and Li, P (2009) Hypothesis Test for Normal Mixture Models: The EM Approach0.92843100%
2Kasahara, H. and Shimotsu, K (2015) Testing the Number of Components in Normal Mixture Regression Models self0.8434375%
3Chen, H. and Chen, J (2003) Tests for Homogeneity in Normal Mixtures in the Presence of a Structural Parameter0.81142100%
4Chen, J. and Tan, X (2009) Inference for Multivariate Normal Mixtures0.7946350%
5Chen, J., Li, P., and Fu, Y (2012) Inference on the Order of a Normal Mixture0.73732100%
6Liu, X. and Shao, Y (2003) Asymptotics for Likelihood Ratio Tests under Loss of Identifiability0.6444250%
7Dempster, A. P., Laird, N. M., and Rubin, D. B (1977) Maximum Likelihood from Incomplete Data via EM Algorithm (with Discussion)0.5112250%
8Li, P. and Chen, J (2010) Testing the Order of a Finite Mixture0.5112250%
9Azas, J.-M., Gassiat, É., and Mercadier, C (2009) The Likelihood Ratio Test for General Mixture Models with or without Structural Parameter0.51121100%
10Dacunha-Castelle, D. and Gassiat, E (1999) Testing the Order of a Model using Locally Conic Parametrization: Population Mixtures and Stationary ARMA Processes0.51121100%

Showing the top 10 of 37 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
1Estimating the Number of Components in Panel Data Finite Mixture Regression Models with an Application to Production Function Heterogeneity Yu Hao Faculty of Business and Economics The University of Hong Kong [email removed] Hiroyuki Kasahara Vancouver School of Economics The University of British Columbia [email removed]0.87452
2Testing the Number of Components in Finite Mixture Normal Regression Models with Panel Data Yu Hao Faculty of Business and Economics The University of Hong Kong [email removed] Hiroyuki Kasahara Vancouver School of Economics The University of British Columbia [email removed]0.73742
3Identification and Estimation of Production Function with Unobserved Heterogeneity Hiroyuki Kasahara Vancouver School of Economics University of British Columbia [email removed] Paul Schrimpf Vancouver School of Economics University of British Columbia [email removed] Michio Suzuki Tohoku University Cabinet Office, Government of Japan [email removed]0.40511