Substantial Bias in the Tobit Estimator: Making a Case for Alternatives

2018 ◽  
Vol 37 (2) ◽  
pp. 231-257 ◽  
Author(s):  
Theodore Wilson ◽  
Tom Loughran ◽  
Robert Brame
1986 ◽  
Vol 106 (2) ◽  
pp. 223-237 ◽  
Author(s):  
A. J. Kempster ◽  
J. P. Chadwick ◽  
D. D. Charles

SUMMARYCarcass data for 1053 steers from the Meat and Livestock Commission's beef breed evaluation programme were used to examine the relative precision of alternative fatness assessments for predicting carcass lean percentage. The data were from four trials and comprised both dairy-bred and suckler-bred cattle by a wide range of sire breeds.A visual assessment of carcass subcutaneous fat content to the nearest percentage unit (SFe) was the single most precise predictor both overall (residual S.d. = 2·28) and within breed (residual S.d. = 2·05). Precision was improved by the addition in multiple regression of the percentage perinephric and retroperitoneal fat (KKCF) in carcass, a visual score of the degree of marbling in the m. longissimus and selected fat thickness measurements taken by calipers on cut surfaces (residual S.d. = 2·11 (overall) and 1·90 (within breed)).When the best overall equation was applied to the breed means, there was substantial bias (predicted – actual carcass lean percentage). Biases ranged from +2·5 (purebred Canadian Holstein and Luing) to – 1·3 (Limousin crosses).Breeds differed significantly in carcass lean content when compared at equal levels of fatness measurements. The differences depended both on the precision with which the measurements predicted carcass lean content and the observed differences in carcass composition that existed before adjustments to equal fatness were made.The robustness of prediction equations was examined by applying them to independent sets of data (a total of 334 carcasses) from four other trials involving steers, heifers, cows and young bulls. Equations were stable for cattle of the same breed, sex and similar levels of fatness but important bias was found between more extreme types of cattle.


Author(s):  
David Bartram

AbstractHappiness/well-being researchers who use quantitative analysis often do not give persuasive reasons why particular variables should be included as controls in their cross-sectional models. One commonly sees notions of a “standard set” of controls, or the “usual suspects”, etc. These notions are not coherent and can lead to results that are significantly biased with respect to a genuine causal relationship.This article presents some core principles for making more effective decisions of that sort.  The contribution is to introduce a framework (the “causal revolution”, e.g. Pearl and Mackenzie 2018) unfamiliar to many social scientists (though well established in epidemiology) and to show how it can be put into practice for empirical analysis of causal questions.  In simplified form, the core principles are: control for confounding variables, and do not control for intervening variables or colliders.  A more comprehensive approach uses directed acyclic graphs (DAGs) to discern models that meet a minimum/efficient criterion for identification of causal effects.The article demonstrates this mode of analysis via a stylized investigation of the effect of unemployment on happiness.  Most researchers would include other determinants of happiness as controls for this purpose.  One such determinant is income—but income is an intervening variable in the path from unemployment to happiness, and including it leads to substantial bias.  Other commonly-used variables are simply unnecessary, e.g. religiosity and sex.  From this perspective, identifying the effect of unemployment on happiness requires controlling only for age and education; a small (parsimonious) model is evidently preferable to a more complex one in this instance.


2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Dean Eckles ◽  
Brian Karrer ◽  
Johan Ugander

AbstractEstimating the effects of interventions in networks is complicated due to interference, such that the outcomes for one experimental unit may depend on the treatment assignments of other units. Familiar statistical formalism, experimental designs, and analysis methods assume the absence of this interference, and result in biased estimates of causal effects when it exists. While some assumptions can lead to unbiased estimates, these assumptions are generally unrealistic in the context of a network and often amount to assuming away the interference. In this work, we evaluate methods for designing and analyzing randomized experiments under minimal, realistic assumptions compatible with broad interference, where the aim is to reduce bias and possibly overall error in estimates of average effects of a global treatment. In design, we consider the ability to perform random assignment to treatments that is correlated in the network, such as through graph cluster randomization. In analysis, we consider incorporating information about the treatment assignment of network neighbors. We prove sufficient conditions for bias reduction through both design and analysis in the presence of potentially global interference; these conditions also give lower bounds on treatment effects. Through simulations of the entire process of experimentation in networks, we measure the performance of these methods under varied network structure and varied social behaviors, finding substantial bias reductions and, despite a bias–variance tradeoff, error reductions. These improvements are largest for networks with more clustering and data generating processes with both stronger direct effects of the treatment and stronger interactions between units.


2019 ◽  
Author(s):  
Donna Coffman ◽  
Jiangxiu Zhou ◽  
Xizhen Cai

Abstract Background Causal effect estimation with observational data is subject to bias due to confounding, which is often controlled for using propensity scores. One unresolved issue in propensity score estimation is how to handle missing values in covariates.Method Several approaches have been proposed for handling covariate missingness, including multiple imputation (MI), multiple imputation with missingness pattern (MIMP), and treatment mean imputation. However, there are other potentially useful approaches that have not been evaluated, including single imputation (SI) + prediction error (PE), SI+PE + parameter uncertainty (PU), and Generalized Boosted Modeling (GBM), which is a nonparametric approach for estimating propensity scores in which missing values are automatically handled in the estimation using a surrogate split method. To evaluate the performance of these approaches, a simulation study was conducted.Results Results suggested that SI+PE, SI+PE+PU, MI, and MIMP perform almost equally well and better than treatment mean imputation and GBM in terms of bias; however, MI and MIMP account for the additional uncertainty of imputing the missingness.Conclusions Applying GBM to the incomplete data and relying on the surrogate split approach resulted in substantial bias. Imputation prior to implementing GBM is recommended.


1975 ◽  
Vol 21 (4) ◽  
pp. 619-625 ◽  
Author(s):  
Merle A Evenson ◽  
Brenda L Warren

Abstract We have established and evaluated a flameless graphite cuvette method for copper in serum. This atomic absorption method provides substantial improvement in sensitivity, adequate accuracy, and acceptable precision, and little sample preparation is required before the analysis. Standard addition studies and measurements of National Bureau of Standards materials indicated that the proposed method is accurate, but that sample pH must be kept between 2 and 3 for high accuracy. Cations and anions that frequently are present in proteincontaining samples do not interfere significantly. Sample cross contamination in the syringe must be carefully avoided. Finally, when results for more than 100 patients' sera by this method were compared to those obtained by flame atomic absorption for the same samples, no substantial bias or inaccuracies could be attributed to this new micro-scale method for serum copper. Hence, this method is ideally suited for use on pediatric patients.


2018 ◽  
Vol 10 (2) ◽  
pp. 1-38 ◽  
Author(s):  
Laura Alfaro ◽  
Maggie X. Chen

Assessing productivity gains from multinational production has been a vital topic of economic research and policy debate. Positive productivity gains are often attributed to productivity spillovers; however, an alternative, much less emphasized channel is selection and market reallocation, whereby competition leads to factor and revenue reallocation within and between domestic firms and exits of the least productive firms. We investigate the roles of these different mechanisms in determining aggregate-productivity gains using a unifying framework that explores the mechanisms' distinct predictions on the distributions of domestic firms: within-firm productivity improvement shifts rightward or reshapes the productivity distribution, while selection and market reallocation move the revenue and employment distributions leftward and raise left truncations. Using a rich cross-country firm-level panel dataset, we find significant evidence of both mechanisms and effects of competition in product, technology, and labor space. However, selection and market reallocation account for the majority of aggregate-productivity gains, suggesting ignoring this channel could lead to substantial bias in understanding the nature of productivity gains from multinational production. (JEL D22, D24, F14, F23, G32, O47)


2021 ◽  
pp. 1-16
Author(s):  
Carlisle Rainey ◽  
Kelly McCaskey

Abstract In small samples, maximum likelihood (ML) estimates of logit model coefficients have substantial bias away from zero. As a solution, we remind political scientists of Firth's (1993, Biometrika, 80, 27–38) penalized maximum likelihood (PML) estimator. Prior research has described and used PML, especially in the context of separation, but its small sample properties remain under-appreciated. The PML estimator eliminates most of the bias and, perhaps more importantly, greatly reduces the variance of the usual ML estimator. Thus, researchers do not face a bias-variance tradeoff when choosing between the ML and PML estimators—the PML estimator has a smaller bias and a smaller variance. We use Monte Carlo simulations and a re-analysis of George and Epstein (1992, American Political Science Review, 86, 323–337) to show that the PML estimator offers a substantial improvement in small samples (e.g., 50 observations) and noticeable improvement even in larger samples (e.g., 1000 observations).


1996 ◽  
Vol 117 (1) ◽  
pp. 173-177 ◽  
Author(s):  
E. J. Hutchinson ◽  
A. Streetly ◽  
C. Grant ◽  
R. Pollitt ◽  
P. Eldridge ◽  
...  

SummaryThe aim of this study was to determine the extent to which selective under-coverage of births to mothers more likely to be at risk of HIV-1 infection will result in a significant underestimation of the true neonatal seroprevalence. Census data, local birth statisties, maternity data and data from the prevalence monitoring programme were used to produce a model to predict the effects of under-coverage in the uptake of neonatal metabolic screening which has been observed in babies with a mother of ethnic group black African. The adjustment factor which allows for under-coverage is the relative inclusion ratio (RIR); the probability that samples from a group at different risk of HIV infection were included in the survey divided by the probability of inclusion for samples from all other babies. The RIR was found to be close to unity (0·97), indicating a minimal bias. Under usual conditions only if the relative inclusion ratio (RIR) declined to values of 0·87 or below would there be a substantial bias. Despite some selective under representation, the results obtained from the Unlinked Anonymous HIV Monitoring Programme Dried Blood Spot Survey would seem to identity levels of prevalence in the population of child-bearing women with a good degree of accuracy and remains a useful tool for resource allocation, planning of services, provision of care and counselling.


1989 ◽  
Vol 19 (11) ◽  
pp. 1451-1457 ◽  
Author(s):  
Mark A. Finney ◽  
Robert E. Martin

Fire occurrence data between the 12th and 20th centuries were obtained from analysis of fire scars on coast redwood (Sequoiasempervirens (D. Don.) Endl.) and bishop pine (Pinusmuricata D. Don.). Mean fire intervals were calculated for settlement and presettlement periods from fire scar samples individually (point data) and from composites of samples aggregated within three approximately 200-ha study areas. Mean fire intervals from point data (20.5 to 29.0 years) were more than three times greater than mean intervals from composite data (6.1 to 9.3 years). Mean fire intervals derived from point data compared well with values previously reported, although substantial bias ascribed to point data suggests that these values for mean fire intervals in redwood forest communities are too large. A period of significantly longer fire intervals during the 17th century was suggested by analysis of fire intervals by century and using a moving average.


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