Bayesian Nonparametric Conditional Copula Estimation of Twin Data

27 Pages Posted: 21 Mar 2016 Last revised: 22 Feb 2017

See all articles by Luciana Dalla Valle

Luciana Dalla Valle

University of Milan - Department of Economics, Business and Statistics

Fabrizio Leisen

University of Kent - Canterbury Campus

Luca Rossini

University of Milan; Ca Foscari University of Venice - Dipartimento di Economia

Date Written: February 21, 2017

Abstract

Several studies on heritability in twins aim at understanding the different contribution of environmental and genetic factors to specific traits. Considering the National Merit Twin Study, our purpose is to correctly analyse the influence of the socioeconomic status on the relationship between twins’ cognitive abilities. Our methodology is based on conditional copulas, which allow us to model the effect of a covariate driving the strength of dependence between the main variables. We propose a flexible Bayesian nonparametric approach for the estimation of conditional copulas, which can model any conditional copula density. Our methodology extends the work of Wu, Wang, and Walker (2015) by introducing dependence from a covariate in an infinite mixture model. Our results suggest that environmental factors are more influential in families with lower socio-economic position.

Keywords: Bayesian nonparametrics, Conditional Copula models, Slice sampling

JEL Classification: C11, C13, C14, C51

Suggested Citation

Dalla Valle, Luciana and Leisen, Fabrizio and Rossini, Luca, Bayesian Nonparametric Conditional Copula Estimation of Twin Data (February 21, 2017). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 8, Available at SSRN: https://ssrn.com/abstract=2752355 or http://dx.doi.org/10.2139/ssrn.2752355

Luciana Dalla Valle

University of Milan - Department of Economics, Business and Statistics ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Fabrizio Leisen

University of Kent - Canterbury Campus ( email )

Cornwallis Building
Canterbury, Kent CT2 7NF
United Kingdom

Luca Rossini (Contact Author)

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

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