An imputation method for categorical variables with application to nonlinear principal component analysis

  • Authors:
  • Pier Alda Ferrari;Paola Annoni;Alessandro Barbiero;Giancarlo Manzi

  • Affiliations:
  • Department of Economics, Business and Statistics, Universití degli Studi di Milano, Milan, Italy;IPSC - European Commission Joint Research Centre, Unit of Econometrics and Applied Statistics, Ispra (VA), Italy;Department of Economics, Business and Statistics, Universití degli Studi di Milano, Milan, Italy;Department of Economics, Business and Statistics, Universití degli Studi di Milano, Milan, Italy

  • Venue:
  • Computational Statistics & Data Analysis
  • Year:
  • 2011

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Abstract

The problem of missing data in building multidimensional composite indicators is a delicate problem which is often underrated. An imputation method particularly suitable for categorical data is proposed. This method is discussed in detail in the framework of nonlinear principal component analysis and compared to other missing data treatments which are commonly used in this analysis. Its performance vs. these other methods is evaluated throughout a simulation procedure performed on both an artificial case, varying the experimental conditions, and a real case. The proposed procedure is implemented using R.