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Quasi-Bayesian Hierarchical Models

Desmond Fairall, Thomas Glinnan

arXiv 30 Jun 2026 · Econometrics

arXiv:2606.31930 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop the Quasi-Bayesian Hierarchical Model (QBHM) for grouped GMM settings. The framework combines Bayesian hierarchical modelling with Laplace-type estimation: it preserves each group-specific objective function, while introducing a pooling term for economically comparable parameters. When the number of studies is fixed, the QBHM estimator-the quasi-posterior mean-has the same asymptotic distribution as GMM when estimating strongly identified study parameters. For weakly identified studies, we analyze the asymptotic properties of the method via a weak-GMM limit experiment: an asymptotic approximation in which the sample-moment criterion remains a random function over the weak parameter space, and the upper-level pooling relation induces a family of priors over weak values. In this experiment, the weak-limit QBHM rule is a Bayes rule under squared loss for the hierarchy-induced weak-limit prior, which provides a decision-theoretic justification for our procedure. We also extend our results to mixed within-study blocks, allowing a single study to contain both strongly and weakly identified parameters. Pooling can also reduce the pointwise asymptotic mean squared error (MSE) relative to unpooled estimation when the bias--variance tradeoff is favorable. Gaussian likelihood, nonlinear weak-GMM, and weak-IV calculations show when this happens, while simulations and a microenterprise application illustrate the method.

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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
1Chernozhukov, Victor and Hong, Han (2003) An MCMC Approach to Classical Estimation1.00063100%
2Meager, Rachael (2019) Understanding the Average Impact of Microcredit Expansions: A Bayesian Hierarchical Analysis of Seven Randomized Experiments0.87452100%
3Andrews, Isaiah and Mikusheva, Anna (2016) Conditional Inference with a Functional Nuisance Parameter0.8434375%
4Kaji, Tetsuya (2021) Theory of Weak Identification in Semiparametric Models0.81142100%
5Egger, Dennis and Haushofer, Johannes and Miguel, Edward and Niehaus… (2022) General Equilibrium Effects of Cash Transfers: Experimental Evidence from Kenya0.73732100%
6Fafchamps, Marcel and McKenzie, David and Quinn, Simon and Woodruff,… (2014) Microenterprise Growth and the Flypaper Effect: Evidence from a Randomized Experiment in Ghana0.73732100%
7Andrews, Isaiah and Mikusheva, Anna (2022) Optimal Decision Rules for Weak GMM0.7218338%
8Bari, Faisal and Malik, Kashif and Meki, Muhammad and Quinn, Simon (2024) Asset-Based Microfinance for Microenterprises: Evidence from Pakistan0.64422100%
9de Mel, Suresh and McKenzie, David and Woodruff, Christopher (2008) Returns to Capital in Microenterprises: Evidence from a Field Experiment0.64422100%
10Banerjee, Abhijit and Breza, Emily and Duflo, Esther and Kinnan, Cyn… (2019) Can Microfinance Unlock a Poverty Trap for Some Entrepreneurs?0.58531100%

Showing the top 10 of 38 scored citations.