Xu Cheng, Sheng Chao Ho, Frank Schorfheide
arXiv 27 Jun 2025 · Econometrics
arXiv:2506.21987 · PDF · DOI · OpenAlex · Extracted main text
We propose an empirical Bayes estimator for two-way effects in linked data sets based on a novel prior that leverages patterns of assortative matching observed in the data. To capture limited mobility we model the bipartite graph associated with the matched data in an asymptotic framework where its Laplacian matrix has small eigenvalues that converge to zero. The prior hyperparameters that control the shrinkage are determined by minimizing an unbiased risk estimate. We show the proposed empirical Bayes estimator is asymptotically optimal in compound loss, despite the weak connectivity of the bipartite graph and the potential misspecification of the prior. We estimate teacher values-added from a linked North Carolina Education Research Data Center student-teacher data set.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Jochmans and Weidner (2019) Fixed‐Effect Regressions on Network Data | 0.941 | 6 | 3 | 83% |
| 2 | Chetty, Friedman, and Rockoff (2014) Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates | 0.843 | 4 | 3 | 75% |
| 3 | Verdier (2020) Estimation and Inference for Linear Models with Two-Way Fixed Effects and Sparsely Matched Data | 0.830 | 7 | 4 | 57% |
| 4 | Brown, Mukherjee, and Weinstein (2018) Empirical Bayes Estimates for a Two-Way Cross-Classified Model | 0.811 | 4 | 2 | 100% |
| 5 | Kane and Staiger (2008) Estimating Teacher Impacts on Student Achievement: An Experimental Evaluation | 0.737 | 3 | 2 | 100% |
| 6 | Kwon (2021) Optimal Shrinkage Estimation of Fixed Effects in Linear Panel Data Models | 0.737 | 3 | 2 | 100% |
| 7 | Kline, Saggio, and Slvsten (2020) Leave‐Out Estimation of Variance Components | 0.644 | 2 | 2 | 100% |
| 8 | Robbins (1956) An Empirical Bayes Approach to Statistics | 0.644 | 2 | 2 | 100% |
| 9 | Xie, Kou, and Brown (2012) SURE Estimates for a Heteroscedastic Hierarchical Model | 0.644 | 2 | 2 | 100% |
| 10 | Gilraine, Gu, and McMillan (2020) A New Method for Estimating Teacher Value-Added | 0.511 | 2 | 2 | 50% |
Showing the top 10 of 39 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.