Biased-Reduced Maximum Likelihood Estimation for the Zero-Inflated Poisson Distribution

No 1102, Econometrics Working Papers from Department of Economics, University of Victoria

Abstract: We investigate the small-sample quality of the maximum likelihood estimators (MLEs) of the parameters of the zero-inflated Poisson distribution. The finite-sample biases are determined to O(n-1) using an analytic bias reduction methodology based on the work of Cox and Snell (1968) and Cordeiro and Klein (1994). Monte Carlo simulations show that the MLEs have very small percentage biases for this distribution, but the analytic bias reduction methods essentially eliminate the bias without adversely affecting the mean squared error s of the estimators. The analytic adjustment compares favourably with the parametric bootstrap bias-corrected estimator, in terms of bias reduction itself, as well as with respect to mean squared error and Pitman’s nearness measure.

Keywords: Zero-inflated Poisson; bias reduction; maximum likelihood estimation; bootstrap (search for similar items in EconPapers)
JEL-codes: C13 C16 C25 C46 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2011-02-15
New Economics Papers: this item is included in nep-ecm and nep-ore
Note: ISSN 1485-6441
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.uvic.ca/socialsciences/economics/_asse ... ometrics/ewp1102.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vic:vicewp:1102

Access Statistics for this paper

More papers in Econometrics Working Papers from Department of Economics, University of Victoria PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2. Contact information at EDIRC.
Bibliographic data for series maintained by Kali Moon ().