|This centre is a member of The LSE Research Laboratory [RLAB]: CASE | CVER | CEP | SERC | STICERD||Cookies?|
Paper No' DARP 031: | Full paper
Save Reference as: BibTeX File | EndNote Import File
Keywords: Latent variables; factor analysis; sufficiency; prediction; exponential family of distributions; living standards analysis
Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Distributional Analysis Research Programme
Share this page: Google Bookmarks | Facebook | Twitter
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.
Copyright © RLAB & LSE 2003 - 2017 | LSE, Houghton Street, London WC2A 2AE | Contact: RLAB | Site updated 26 April 2017