Entropy 2014, 16(3), 1243-1271; doi:10.3390/e16031243
Article

A Bayesian Approach to the Balancing of Statistical Economic Data

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Received: 16 January 2014; in revised form: 12 February 2014 / Accepted: 17 February 2014 / Published: 26 February 2014
(This article belongs to the Special Issue Maximum Entropy and Its Application)
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract: This paper addresses the problem of balancing statistical economic data, when data structure is arbitrary and both uncertainty estimates and a ranking of data quality are available. Using a Bayesian approach, the prior configuration is described as a multivariate random vector and the balanced posterior is obtained by application of relative entropy minimization. The paper shows that conventional data balancing methods, such as generalized least squares, weighted least squares and biproportional methods are particular cases of the general method described here. As a consequence, it is possible to determine the underlying assumptions and range of application of each traditional method. In particular, the popular biproportional method is found to assume that all source data has the same relative uncertainty. Finally, this paper proposes a simple linear iterative method that generalizes the biproportional method to the data balancing problem with arbitrary data structure, uncertainty estimates and multiple data quality levels.
Keywords: statistical economic data; data balancing; Bayesian approach; relative entropy minimization; uncertainty; data quality
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MDPI and ACS Style

Rodrigues, J.F.D. A Bayesian Approach to the Balancing of Statistical Economic Data. Entropy 2014, 16, 1243-1271.

AMA Style

Rodrigues JFD. A Bayesian Approach to the Balancing of Statistical Economic Data. Entropy. 2014; 16(3):1243-1271.

Chicago/Turabian Style

Rodrigues, João F.D. 2014. "A Bayesian Approach to the Balancing of Statistical Economic Data." Entropy 16, no. 3: 1243-1271.

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