Sampling properties of the Bayesian posterior mean with an application to WALS estimation

A-Tier
Journal: Journal of Econometrics
Year: 2022
Volume: 230
Issue: 2
Pages: 299-317

Authors (3)

De Luca, Giuseppe (not in RePEc) Magnus, Jan R. (not in RePEc) Peracchi, Franco (Istituto Einaudi per l'Economi...)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

Many statistical and econometric learning methods rely on Bayesian ideas. When applied in a frequentist setting, their precision is often assessed using the posterior variance. This is permissible asymptotically, but not necessarily in finite samples. We explore this issue focusing on weighted-average least squares (WALS), a Bayesian-frequentist ‘fusion’. Exploiting the sampling properties of the posterior mean in the normal location model, we derive estimators of the finite-sample bias and variance of WALS. We study the performance of the proposed estimators in an empirical application and a closely related Monte Carlo experiment which analyze the impact of legalized abortion on crime.

Technical Details

RePEc Handle
repec:eee:econom:v:230:y:2022:i:2:p:299-317
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-25