Description
This dissertation applies the Bayesian approach as a method to improve the estimation efficiency of existing econometric tools. The first chapter suggests the Continuous Choice Bayesian (CCB) estimator which combines the Bayesian approach with the Continuous Choice (CC) estimator suggested by Imai and Keane (2004). Using simulation study, I provide two important findings. First, the CC estimator clearly has better finite sample properties compared to a frequently used Discrete Choice (DC) estimator. Second, the CCB estimator has better estimation efficiency when data size is relatively small and it still retains the advantage of the CC estimator over the DC estimator. The second chapter estimates baseball's managerial efficiency using a stochastic frontier function with the Bayesian approach. When I apply a stochastic frontier model to baseball panel data, the difficult part is that dataset often has a small number of periods, which result in large estimation variance. To overcome this problem, I apply the Bayesian approach to a stochastic frontier analysis. I compare the confidence interval of efficiencies from the Bayesian estimator with the classical frequentist confidence interval. Simulation results show that when I use the Bayesian approach, I achieve smaller estimation variance while I do not lose any reliability in a point estimation. Then, I apply the Bayesian stochastic frontier analysis to answer some interesting questions in baseball.
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Details
Title
- Application of Bayesian methods to structural models and stochastic frontier production models
Contributors
- Choi, Kwang-shin (Author)
- Ahn, Seung (Thesis advisor)
- Mehra, Rajnish (Committee member)
- Park, Sungho (Committee member)
- Arizona State University (Publisher)
Date Created
The date the item was original created (prior to any relationship with the ASU Digital Repositories.)
2014
Subjects
Resource Type
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Note
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thesisPartial requirement for: Ph.D., Arizona State University, 2014
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bibliographyIncludes bibliographical references (pages 81-84 )
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Field of study: Economics
Citation and reuse
Statement of Responsibility
by Kwang-shin Choi