A Poisson ridge regression estimator

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 4
Pages: 1475-1481

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The standard statistical method for analyzing count data is the Poisson regression model, which is usually estimated using maximum likelihood (ML) method. The ML method is very sensitive to multicollinearity. Therefore, we present a new Poisson ridge regression estimator (PRR) as a remedy to the problem of instability of the traditional ML method. To investigate the performance of the PRR and the traditional ML approaches for estimating the parameters of the Poisson regression model, we calculate the mean squared error (MSE) using Monte Carlo simulations. The result from the simulation study shows that the PRR method outperforms the traditional ML estimator in all of the different situations evaluated in this paper.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:4:p:1475-1481
Journal Field
General
Author Count
2
Added to Database
2026-01-26