IDEAS home Printed from https://ideas.repec.org/p/ems/eureir/560.html
   My bibliography  Save this paper

Ecological panel inference in repeated cross sections

Author

Listed:
  • Pelzer, B.
  • Eisinga, R.
  • Franses, Ph.H.B.F.

Abstract

This paper presents a Markov chain model for the estimation of individual-level binary transitions from a time series of independent repeated cross-sectional (RCS) samples. Although RCS samples lack direct information on individual turnover, it is demonstrated here that it is possible with these data to draw meaningful conclusions on individual state-to-state transitions. We discuss estimation and inference using maximum likelihood, parametric bootstrap and Markov chain Monte Carlo approaches. The model is illustrated by an application to the rise in ownership of computers in Dutch households since 1986, using a 13-wave annual panel data set. These data encompass more information than we need to estimate the model, but this additional information allows us to assess the validity of the parameter estimates. We examine the determinants of the transitions from 'have-not' to 'have' (and back again) using well-known socio-economic and demographic covariates of the digital divide. Parametric bootstrap and Bayesian simulation are used to evaluate the accuracy and the precision of the ML estimates and the results are also compared with those of a first-order dynamic panel model. To mimic genuine repeated cross-sectional data, we additionally analyse samples of independent observations randomly drawn from the panel. Software implementing the model is available.

Suggested Citation

  • Pelzer, B. & Eisinga, R. & Franses, Ph.H.B.F., 2002. "Ecological panel inference in repeated cross sections," Econometric Institute Research Papers EI 2002-22, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:560
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/560/feweco20020816135219.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pelzer, Ben & Eisinga, Rob & Franses, Philip Hans, 2002. "Inferring Transition Probabilities from Repeated Cross Sections," Political Analysis, Cambridge University Press, vol. 10(2), pages 113-133, April.
    2. Oecd, 2001. "Understanding the Digital Divide," OECD Digital Economy Papers 49, OECD Publishing.
    3. Jarque, Carlos M. & Bera, Anil K., 1980. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals," Economics Letters, Elsevier, vol. 6(3), pages 255-259.
    4. Gary King & Ori Rosen & Martin A. Tanner, 1999. "Binomial-Beta Hierarchical Models for Ecological Inference," Sociological Methods & Research, , vol. 28(1), pages 61-90, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bierens, H.J. & Broersma, L., 1991. "The relation between unemployment and interest rate : some international evidence," Serie Research Memoranda 0112, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Isaiah Olurinola & Romanus Osabohien & Bosede Ngozi Adeleye & Ifeoluwa Ogunrinola & Jacob Isaac Omosimua & Tyrone De Alwis, 2021. "Digitalization and Innovation in Nigerian Firms," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 263-277, March.
    3. Juncal Cunado & David Gabauer & Rangan Gupta, 2024. "Realized volatility spillovers between energy and metal markets: a time-varying connectedness approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-17, December.
    4. Elie Bouri & Georges Azzi, 2014. "On the Dynamic Transmission of Mean and Volatility across the Arab Stock Markets," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(3), pages 279-304, December.
    5. Eric Fur, 2023. "Risk and return of classic car market prices: passion or financial investment?," Journal of Asset Management, Palgrave Macmillan, vol. 24(1), pages 59-68, February.
    6. Georgiev, Iliyan, 2010. "Model-based asymptotic inference on the effect of infrequent large shocks on cointegrated variables," Journal of Econometrics, Elsevier, vol. 158(1), pages 37-50, September.
    7. Irene L. Hudson & Linda Moore & Eric J. Beh & David G. Steel, 2010. "Ecological inference techniques: an empirical evaluation using data describing gender and voter turnout at New Zealand elections, 1893–1919," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(1), pages 185-213, January.
    8. Ericsson, Neil R., 2016. "Eliciting GDP forecasts from the FOMC’s minutes around the financial crisis," International Journal of Forecasting, Elsevier, vol. 32(2), pages 571-583.
    9. Jin, Xiaoye, 2015. "Volatility transmission and volatility impulse response functions among the Greater China stock markets," Journal of Asian Economics, Elsevier, vol. 39(C), pages 43-58.
    10. G. D. Gettinby & C. D. Sinclair & D. M. Power & R. A. Brown, 2004. "An Analysis of the Distribution of Extreme Share Returns in the UK from 1975 to 2000," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(5‐6), pages 607-646, June.
    11. Damian Jelito & Marcin Pitera, 2018. "New fat-tail normality test based on conditional second moments with applications to finance," Papers 1811.05464, arXiv.org, revised Apr 2020.
    12. Ilham Haouas & Naceur Kheraief & Arusha Cooray & Syed Jawad Hussain Shahzad, 2019. "Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries," Working Papers 1294, Economic Research Forum, revised 2019.
    13. Lenten, Liam J.A. & Geerling, Wayne & Kónya, László, 2012. "A hedonic model of player wage determination from the Indian Premier League auction: Further evidence," Sport Management Review, Elsevier, vol. 15(1), pages 60-71.
    14. Olimpia NEAGU, 2019. "Digital Divide Gap Convergence Across European Union: The Role Of Urbanisation," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 4(1), pages 43-48.
    15. Stephen Keef & Melvin Roush, 2005. "Day-of-the-week effects in the pre-holiday returns of the Standard & Poor's 500 stock index," Applied Financial Economics, Taylor & Francis Journals, vol. 15(2), pages 107-119.
    16. Akos Jakobi, 2013. "Space and virtuality: new characteristics of inequalities in the information society and economy," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 5(1), pages 4-14, June.
    17. Martha Misas A. & Carlos Esteban Posada P & Diego Mauricio Vásquez E, 2003. "¿Está determinado el nivel de precios por las expectativas de dinero y producto en Colombia?," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 21(43), pages 8-31, June.
    18. Yuan, Di & Li, Sufang & Li, Rong & Zhang, Feipeng, 2022. "Economic policy uncertainty, oil and stock markets in BRIC: Evidence from quantiles analysis," Energy Economics, Elsevier, vol. 110(C).
    19. Benedikt Gasser & Joel Stouder, 2022. "Rescue Emergencies Due to High-Altitude Illnesses Are Rare in Switzerland," IJERPH, MDPI, vol. 19(2), pages 1-7, January.
    20. Bouri, Elie & Gabauer, David & Gupta, Rangan & Tiwari, Aviral Kumar, 2021. "Volatility connectedness of major cryptocurrencies: The role of investor happiness," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureir:560. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePub (email available below). General contact details of provider: https://edirc.repec.org/data/feeurnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.