scholarly journals Maximum Likelihood Estimation of Power-law Degree Distributions via Friendship Paradox-based Sampling

2021 ◽  
Vol 15 (6) ◽  
pp. 1-28
Author(s):  
Buddhika Nettasinghe ◽  
Vikram Krishnamurthy

This article considers the problem of estimating a power-law degree distribution of an undirected network using sampled data. Although power-law degree distributions are ubiquitous in nature, the widely used parametric methods for estimating them (e.g., linear regression on double-logarithmic axes and maximum likelihood estimation with uniformly sampled nodes) suffer from the large variance introduced by the lack of data-points from the tail portion of the power-law degree distribution. As a solution, we present a novel maximum likelihood estimation approach that exploits the friendship paradox to sample more efficiently from the tail of the degree distribution. We analytically show that the proposed method results in a smaller bias, variance and a Cramèr–Rao lower bound compared to the vanilla maximum likelihood estimate obtained with uniformly sampled nodes (which is the most commonly used method in literature). Detailed numerical and empirical results are presented to illustrate the performance of the proposed method under different conditions and how it compares with alternative methods. We also show that the proposed method and its desirable properties (i.e., smaller bias, variance, and Cramèr–Rao lower bound compared to vanilla method based on uniform samples) extend to parametric degree distributions other than the power-law such as exponential degree distributions as well. All the numerical and empirical results are reproducible and the code is publicly available on Github.

2019 ◽  
Vol 100 (6) ◽  
Author(s):  
Víctor Navas-Portella ◽  
Álvaro González ◽  
Isabel Serra ◽  
Eduard Vives ◽  
Álvaro Corral

2020 ◽  
pp. 1-25
Author(s):  
Chang-Jin Kim ◽  
Jaeho Kim

While Perron and Wada (2009) maximum likelihood estimation approach suggests that postwar US real GDP follows a trend stationary process (TSP), our Bayesian approach based on the same model and the same sample suggests that it follows a difference stationary process (DSP). We first show that the results based on the approach should be interpreted with caution, as they are relatively more subject to the ‘pile-up problem’ than those based on the Bayesian approach. We then directly estimate and compare the two competing TSP and DSP models of real GDP within the Bayesian framework. Our empirical results suggest that a DSP model is preferred to a TSP model both in terms of in-sample fits and out-of-sample forecasts.


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