What is truth? The Bayesian Dawid-Skene Method

I just learned about the Bayesian Dawid-Skene method. This is a summary.

Some things are confidently measurable. Other things are harder to perceive or interpret. An expert researcher might think that they know an answer. But there are two big challenges: 1) The researcher is human and can err & 2) the researcher is finite with limited time and resources. Even artificial intelligence has imperfect perception and reason. What do we do?

A perfectly sensible answer is to ask someone else what they think. They might make a mistake too. But if their answer is formed independently, then we can hopefully get closer to the truth with enough iterations. Of course, nothing is perfectly independent. We all share the same globe, and often the same culture or language. So, we might end up with biased answer. We can try to correct for bias once we have an answer, so accepting the bias in the first place is a good place to start.  

The Bayesian Dawid-Skene (henceforth DS) method helps to aggregate opinions and find the truth of a matter given very weak assumptions ex ante. Here I’ll provide an example of how the method works.

Let’s start with a very simple question, one that requires very little thought and logic. It may require some context and social awareness, but that’s hard to avoid. Say that we have a list of n=100 images. Each image has one of two words written on it, “pass” and “fail”. If typed, then there is little room for ambiguity. Typed language is relatively clear even when the image is substantially corrupted. But these words are written, maybe with a variety of pens, by a variety of hands, and were stored under a variety of conditions. Therefore, we might be a little less trusting of what a computer would spit out by using optical character recognition (OCR). Given our own potential for errors and limited time, we might lean on some other people to help interpret the scripts.

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Interpreting New DIDs

If you didn’t know already, the past five years has been a whirl-wind of new methods in the staggered Differences-in-differences (DID) literature – a popular method to try to tease out causal effects statistically. This post restates practical advice from Jonathan Roth.

The prior standard was to use Two-Way-Fixed-Effects (TWFE). This controlled for a lot of unobserved variation over individuals or groups and time. The fancier TWFE methods were interacted with the time relative to treatment. That allowed event studies and dynamic effects.

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