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Estimating the Unrestricted and Restricted Liu Estimators for the Poisson Regression Model: Method and Application

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This paper considers both unrestricted and restricted Liu estimators in the presence of multicollinearity for the Poisson regression model. It also considers some new estimators of the shrinkage parameter for… Click to show full abstract

This paper considers both unrestricted and restricted Liu estimators in the presence of multicollinearity for the Poisson regression model. It also considers some new estimators of the shrinkage parameter for both unrestricted and restricted Liu estimators. Based on a simulation study and its empirical application, we found that the restricted estimator outperforms the unrestricted one. Further, the restricted Liu estimator also outperforms both the unrestricted Liu and restricted Liu estimators. Hence, this new method is a preferred option when the coefficient vector β may belong to a linear sub-space defined by Rβ = r.

Keywords: liu estimators; regression model; restricted liu; unrestricted restricted; poisson regression

Journal Title: Computational Economics
Year Published: 2020

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