Abul Naga, Ramses H. (1997) Prediction and sufficiency in the model factor analysis. DARP (31). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.
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Abstract
We contrast two approaches to the prediction of latent variables in the model of factor analysis. The likelihood statistic is a sufficient statistic for the unobservables when sampling arises from the exponential family of distributions. Linear predictors, on the other hand, can be obtained as distribution-free statistics. We provide conditions under which a class of linear predictors is sufficient for the exponential family of distributions. We also examine various predictors in the light of the following criteria: (I) sufficiency, (ii) mean-square error, and (iii) unbiasedness and illustrate our results with the help of Chinese data on living standards.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://sticerd.lse.ac.uk |
| Additional Information: | © 1997 Ramses H. Abul Naga |
| Divisions: | STICERD |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HV Social pathology. Social and public welfare. Criminology |
| JEL classification: | C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General I - Health, Education, and Welfare > I3 - Welfare and Poverty C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs |
| Date Deposited: | 07 Jul 2008 13:00 |
| Last Modified: | 11 Dec 2024 18:24 |
| URI: | http://eprints.lse.ac.uk/id/eprint/6597 |
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