Fall Seminar Series - September 29, 2005
University of Minnesota
School of Statistics
College of Liberal Arts

Markov Chain Conditions for Admissibility

Jim Hobert
Department of Statistics
University of Florida

Thursday, September 29, 2005
3:30 PM, 115 Ford Hall
Minneapolis, East Bank Campus
Social at 3:00 PM, 300 Ford Hall

Abstract

Suppose that $X$ is a random vector with density $f(x|\theta)$ and that $\pi(\theta|x)$ is a proper posterior density corresponding to an improper prior $\nu(\theta)$. The prior is called strongly admissible if the formal Bayes estimator of every bounded function of $\theta$ is admissible under squared error loss. Eaton (1992, Annals of Statistics) showed that recurrence of a certain Markov chain, $W$, defined in terms of $f$ and $\nu$, implies the strong admissibility of $\nu$. Hobert and Robert (1999, Annals of Statistics) showed that $W$ is recurrent if and only if a related Markov chain, $\tilde{W}$, is recurrent. I will show that when $X$ is an exponential random variable, a fairly thorough analysis of the Markov chain $\tilde{W}$ is possible and this leads to a simple sufficient condition for strong admissibility. I will also explain how the relationship between $W$ and $\tilde{W}$ can be used to establish that certain perturbations of strongly admissible priors retain strong admissibility. (This is joint work with M. Eaton, G. Jones, D. Marchev and J. Schweinsberg.)