Bootstrap methods for covariance structures.

The optimal minimum distance (OMD) estimator for models of covariance structures is asymptotically efficient but has much worse finite-sample properties than does the equally weighted minimum distance (EWMD) estimator. This paper shows how the bootstrap can be used to improve the finite-sample perf...

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Bibliographic Details
Published in:Journal of Human Resources Vol. 33; no. 1; pp. 39 - 62
Main Author: Horowitz, Joel L.
Format: Article
Published: University of Wisconsin Press Winter98
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Winter98
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      pub: University of Wisconsin Press
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        atl: Bootstrap methods for covariance structures.
      aug:
        au: Horowitz, Joel L.
      su:
        Statistical bootstrapping
        Estimation theory
        Analysis of covariance
        Confidence intervals
        Mathematical models
        Welfare economics
        Mathematical models of income
      sug:
        subj:
          Statistical bootstrapping
          Estimation theory
          Analysis of covariance
          Confidence intervals
          Mathematical models
          Welfare economics
          Mathematical models of income
      ab: The optimal minimum distance (OMD) estimator for models of covariance structures is asymptotically efficient but has much worse finite-sample properties than does the equally weighted minimum distance (EWMD) estimator. This paper shows how the bootstrap can be used to improve the finite-sample performance of the OMD estimator. The theory underlying the bootstrap's ability to reduce the bias of estimators and errors in the coverage probabilities of confidence intervals is summarized. The results of numerical experiments and an empirical example show that the bootstrap often essentially eliminates the bias of the OMD estimator. The finite-sample estimation efficiency of the bias-corrected OMD estimator often exceeds that of the EWMD estimator. Moreover, the true coverage probabilities of confidence intervals based on the OMD estimator with bootstrap-critical values are very close to the nominal coverage probabilities. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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