Saved in:
Bibliographic Details
Main Authors: Dardanoni, Valentino, Demichelis, Stefano
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2411.06129
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866912475065090048
author Dardanoni, Valentino
Demichelis, Stefano
author_facet Dardanoni, Valentino
Demichelis, Stefano
contents We propose a principled framework for nonparametric empirical Bayes (EB) estimation, based on the idea that the prior should be consistent with the observed posterior and that Bayesian updating should be stable. Focusing on discretized priors, we characterize EB estimators as fixed points of a posterior belief operator. We establish the uniqueness of such fixed points and illustrate how the approach improves transparency and interpretability in standard EB settings, including a recent model of discrimination.
format Preprint
id arxiv_https___arxiv_org_abs_2411_06129
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Rational Expectations in Empirical Bayes
Dardanoni, Valentino
Demichelis, Stefano
Methodology
We propose a principled framework for nonparametric empirical Bayes (EB) estimation, based on the idea that the prior should be consistent with the observed posterior and that Bayesian updating should be stable. Focusing on discretized priors, we characterize EB estimators as fixed points of a posterior belief operator. We establish the uniqueness of such fixed points and illustrate how the approach improves transparency and interpretability in standard EB settings, including a recent model of discrimination.
title Rational Expectations in Empirical Bayes
topic Methodology
url https://arxiv.org/abs/2411.06129