Please use this identifier to cite or link to this item: http://hdl.handle.net/2123/8256

Title: Estimation of Public Goods Game Data
Authors: Merrett, Danielle
School of Economics
Keywords: public goods
voluntary contributions mechanism
economic experiments
random effects
fixed effects
ordered logit
finite mixture models
Issue Date: Apr-2012
Publisher: School of Economics
Series/Report no.: 2012-09
Abstract: This paper compares the performance of alternative estimation approaches for Public Goods Game data. A leave-one-out cross validation was applied to test the performance of five estimation approaches. Random effects is revealed as the best estimation approach because of its un-biased and precise estimates and its ability to estimate time-invariant demographics. Surprisingly, approaches that treat the choice variable as continuous out-perform those that treat the choice variable as discrete. Correcting for censoring is shown to induce biased estimates. A finite Poisson mixture model produced relatively un-biased estimates however lacked the precision of fixed and random effects estimation.
URI: http://hdl.handle.net/2123/8256
Department/Unit/Centre: School of Economics
Appears in Collections:Working Papers - Economics

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