Verifying the existence of maximum likelihood estimates for generalized linear models

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Tác giả: Sergio Correia, Paulo Guimarães, Thomas Zylkin

Ngôn ngữ: eng

Ký hiệu phân loại: 526.5 Mathematical geography

Thông tin xuất bản: 2019

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Bộ sưu tập: Metadata

ID: 162678

A fundamental problem with nonlinear models is that maximum likelihood estimates are not guaranteed to exist. Though nonexistence is a well known problem in the binary choice literature, it presents significant challenges for other models as well and is not as well understood in more general settings. These challenges are only magnified for models that feature many fixed effects and other high-dimensional parameters. We address the current ambiguity surrounding this topic by studying the conditions that govern the existence of estimates for (pseudo-)maximum likelihood estimators used to estimate a wide class of generalized linear models (GLMs). We show that some, but not all, of these GLM estimators can still deliver consistent estimates of at least some of the linear parameters when these conditions fail to hold. We also demonstrate how to verify these conditions in models with high-dimensional parameters, such as panel data models with multiple levels of fixed effects.Comment: JEL Classification Codes: C13, C18, C23, C25 Keywords: Nonlinear models, Separation, Pseudo-maximum likelihood, Panel data
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