29 mars 2016, 15h30–17h00
Salle MS 001
Econometrics and Empirical Economics Seminar
Résumé
We consider point estimation and inference based on modifications of the profile likelihood in models for dyadic interactions between n agents featuring agent-specific parameters. This setup covers the β-model of network formation and generalizations thereof. The maximum-likelihood estimator of such models has bias and standard deviation of O(n¯¹) and so is asymptotically biased. Estimation based on modified likelihoods leads to estimators that are asymptotically unbiased and likelihood-ratio tests that exhibit correct size. We apply the modifications to versions of the β-model for network formation and of the Bradley-Terry model for paired comparisons.