Department of Economics and Business - Universitat Pompeu Fabra

Title:: Compositional data analysis — linear algebra, visualization and interpretation
Author:: Michael Greenacre
Date:: November 2021
Abstract:: Compositional data analysis is concerned with multivariate data that have a constant sum, usually 1 or 100%. These are data often found in biochemistry and geochemistry, but also in the social sciences, when relative values are of interest rather than the raw values. Recent applications are in the area of very high-dimensional "omics" data. Logratios are frequently used for this type of data, i.e. the logarithms of ratios of the components of the data vectors. These ratios raise interesting issues in matrix-vector representation, computation and interpretation, which will be dealt with in this chapter.
JEL codes:: C19, C88
Area of Research:: Statistics, Econometrics and Quantitative Methods

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