Comparison between Renyi GME and Tsallis GME for estimation Kink regression

Document Type : Research Paper

Authors

1 Baghdad University, College of Administration and Economics, Baghdad, Iraq

2 Al-Iraqia University, College of Administration and Economics, Baghdad, Iraq

Abstract

In this paper, an estimation of the parameters of the Kink regression model was made by relying on higher order from the general maximum entropy method with two measures Tsallis and Renyi ($\alpha=3,~\alpha=4,~\alpha=5,~\alpha=6$), A practical application has been made to data for a real phenomenon in the Iraqi economy, which is inflation with the Debt/GDP ratio and a statistical analysis of it.  After making a comparison with other estimation methods, as the results showed that the explanatory variable for the kink point is equal to (5), and the results show a decrease in the Debt/GDP ratio after observations Kink.

Keywords

[1] E. Ciavolino, Modelling GME and PLS estimation methods for evaluating the job satisfaction in the public sector, Link¨oping Elect. Conf. Proc. 149(14) (2008) 65–75.
[2] E. Ciavolino and A. Al-Nasser, Information theoretic estimation improvement to the nonlinear gompertz’s model based on ranked set sampling, J. Appl. Quant. Meth. 5(2)(2010) 317–330.
[3] P. Ganong, & S. J¨ager, A permutation test and estimation alternatives for the regression kink design, IZA Discussion Paper, 8282 (2014) 1–33.
[4] A. Golan and J. Perloff, Comparison of maximum entropy and higher-order entropy estimators, J. Econ. 107(1-2) (2002) 195–211.
[5] B. Hansen, Regression kink with an unknown threshold, J. Bus. Econ. Stat. 35(2) (2017) 228–240.
[6] S. Kamar and B. Msallam, Comparative study between generalized maximum entropy and Bayes methods to estimate the four parameter Weibull growth model, J. Prob. Stat. (2020).
[7] R. Sarma and T. Redd, A Nonparametric Plugin Entropy Estimator based Renyi Entropy in Construction of Decision Trees, Sri Krishnadevaraya University Anantapuramu, 2016.
[8] P. Tarkhamtham, W. Yamaka and S. Sriboonchitta, The generalize maximum Tsallis entropy estimator in kink regression model, J. Phys. Conf. Series, 1053(1) (2018) 012103.
[9] P. Tarkhamtham and W. Yamaka, High-order generalized maximum entropy estimator in Kink regression model, Thai J. Math. Special Issue, (2019) 185–200.
[10] P. Tibprasorn, P. Maneejuk and S. Sriboochitta, Generalized information theoretical approach to panel regression kink model, Thai J. Math. Special Issue, (2017) 133–145.
Volume 12, Issue 2
November 2021
Pages 743-750
  • Receive Date: 18 December 2020
  • Revise Date: 09 May 2021
  • Accept Date: 27 May 2021