Statistical Methods and Applications

, Volume 19, Issue 2, pp 217–236 | Cite as

Consequences of effect size heterogeneity for meta-analysis: a Monte Carlo study

  • Mark J. Koetse
  • Raymond J. G. M. Florax
  • Henri L. F. de Groot
Open Access
Original Article

Abstract

In this article we use Monte Carlo analysis to assess the small sample behaviour of the OLS, the weighted least squares (WLS) and the mixed effects meta-estimators under several types of effect size heterogeneity, using the bias, the mean squared error and the size and power of the statistical tests as performance indicators. Specifically, we analyse the consequences of heterogeneity in effect size precision (heteroskedasticity) and of two types of random effect size variation, one where the variation holds for the entire sample, and one where only a subset of the sample of studies is affected. Our results show that the mixed effects estimator is to be preferred to the other two estimators in the first two situations, but that WLS outperforms OLS and mixed effects in the third situation. Our findings therefore show that, under circumstances that are quite common in practice, using the mixed effects estimator may be suboptimal and that the use of WLS is preferable.

Keywords

Effect size heterogeneity Meta-analysis Monte Carlo analysis OLS meta-estimator WLS meta-estimator Mixed effects meta-estimator Small sample performance 

JEL Classification

C12 C15 C40 

Notes

Acknowledgments

This research is supported through the program ‘Stimulating the Adoption of Energy-Efficient Technologies’, funded by the Netherlands Organization for Scientific Research (NWO) and the Dutch Ministry of Economic Affairs (SenterNovem). We are grateful to two anonymous referees for useful comments on an earlier version of this article. The usual disclaimer applies.

Open Access

This article is distributed under the terms of the Creative Commons Attribution Noncommercial License which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

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Copyright information

© The Author(s) 2009

Authors and Affiliations

  • Mark J. Koetse
    • 1
  • Raymond J. G. M. Florax
    • 1
    • 2
  • Henri L. F. de Groot
    • 1
    • 3
  1. 1.Department of Spatial EconomicsVU University AmsterdamAmsterdamThe Netherlands
  2. 2.Department of Agricultural EconomicsPurdue UniversityWest LafayetteUSA
  3. 3.Tinbergen InstituteAmsterdamThe Netherlands

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