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Nonparametric Estimation of the Random Coefficients Model: An Elastic Net Approach

Florian Heiss, Stephan Hetzenecker, Maximilian Osterhaus

arXiv 18 Sep 2019 · Econometrics · publishedJournal of Econometrics (2021) · 3 citations (OpenAlex)

arXiv:1909.08434 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper investigates and extends the computationally attractive nonparametric random coefficients estimator of Fox, Kim, Ryan, and Bajari (2011). We show that their estimator is a special case of the nonnegative LASSO, explaining its sparse nature observed in many applications. Recognizing this link, we extend the estimator, transforming it to a special case of the nonnegative elastic net. The extension improves the estimator's recovery of the true support and allows for more accurate estimates of the random coefficients' distribution. Our estimator is a generalization of the original estimator and therefore, is guaranteed to have a model fit at least as good as the original one. A theoretical analysis of both estimators' properties shows that, under conditions, our generalized estimator approximates the true distribution more accurately. Two Monte Carlo experiments and an application to a travel mode data set illustrate the improved performance of the generalized estimator.

Citation extraction

36
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77
in-text mentions
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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
1fox2016 APACrefauthors Fox, J T. , Kim, K. \ Yang, C. APACrefauthors \ (2016) 20161.00074100%
2wu2014elastic APACrefauthors Wu, L. \ Yang, Y. APACrefauthors \ (2014) 20141.00053100%
3wu2014lasso APACrefauthors Wu, L. , Yang, Y. \ Liu, H. APACrefauthor… (2014) 20141.00053100%
4fox2011 APACrefauthors Fox, J T. , Kim, K. , Ryan, S. \ Bajari, P. A… (2011) 20110.9416583%
5train2008 APACrefauthors Train, K. APACrefauthors \ (2008) 20080.8746367%
6jia2010 APACrefauthors Jia, J. \ Yu, B. APACrefauthors \ (2010) 20100.7374275%
7houde2019 APACrefauthors Houde, S. \ Myers, E. APACrefauthors \ (2019) 2019April0.73732100%
8hastie09 APACrefauthors Hastie, T. , Tibshirani, R. \ Friedman, J. A… (2009) 20090.64422100%
9hastie2005 APACrefauthors Zou, H. \ Hastie, T. APACrefauthors \ (2005) 20050.64422100%
10nevo2016 APACrefauthors Nevo, A. , Turner, J L. \ Williams, J W. APA… (2016) 20160.58531100%

Showing the top 10 of 36 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
1A sliced Wasserstein and diffusion approach to random coefficient models0.40511