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An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units
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TLDR
The authors illustrates the danger of spurious regression from this kind of misspecification, using as an example a wage regression estimated on data for individual workers that includes in the specification aggregate regressors for characteristics of geographical states.Abstract:
Many economic researchers have attempted to measure the effect of aggregate market or public policy variables on micro units by merging aggregate data with micro observations by industry, occupation, or geographical location, then using multiple regression or similar statistical models to measure the effect of the aggregate variable on the micro units. The methods are usually based upon the assumption of independent disturbances, which is typically not appropriate for data from populations with grouped structure. Incorrectly using ordinary least squares can lead to standard errors that are seriously biased downward. This note illustrates the danger of spurious regression from this kind of misspecification, using as an example a wage regression estimated on data for individual workers that includes in the specification aggregate regressors for characteristics of geographical states. Copyright 1990 by MIT Press.read more
Citations
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Determinants of citation impact: A comparative analysis of the Global South versus the Global North
TL;DR: In this paper, the authors apply bibliometric and econometric analysis to study how citation impact varies across countries and find that specialization in particular scientific fields seems significantly more important in the Global South than in the global North.
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The impact of roads and agricultural extension on consumption growth and poverty in fifteen Ethiopian villages
TL;DR: In this article, the authors investigated whether public investments that led to improvements in road quality and increased access to agricultural extension services led to faster consumption growth and lower rates of poverty in rural Ethiopia.
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Is Fraud Contagious? Co-Worker Influence on Misconduct by Financial Advisors
TL;DR: In this article, co-workers influence an individual's propensity to commit financial misconduct, using a dataset of U.S. financial advisors, which includes individuals' employment histories and records of misconduct.
Journal ArticleDOI
Testing for the Effects of Concealed Weapons Laws: Specification Errors and Robustness*
TL;DR: In this article, the authors reestimate the model and check for incorrect functional form, omitted variables, and possible second-order bias in the t-ratios, concluding that right-to-carry concealed weapons laws tend to reduce violent crime.
Journal ArticleDOI
Immigration, cultural distance and natives' attitudes towards immigrants : evidence from Swiss voting results
TL;DR: In this paper, the authors combine community-level outcomes of 27 votes about immigration issues in Switzerland with census data to estimate the effect of immigration on natives' attitudes towards immigration, and they find that the share of culturally different immigrants is a significant and sizable determinant of anti-immigration votes, while the presence of culturally similar immigrants does not affect natives' voting behavior at all.
References
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Book
Statistical abstract of the United States
TL;DR: The Red River of the North basin of the Philippines was considered a part of the Louisiana Purchase by the United States Department of Commerce in the 1939 Census Atlas of the United Philippines as discussed by the authors.
Journal ArticleDOI
Elements of Econometrics.
Ian Domowitz,Jan Kmenta +1 more
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
Book
Elements of econometrics
TL;DR: The emphasis is on simplification whenever possible, assuming the readers know college algebra and basic calculus, and Jan Kmenta explains all methods within the simplest framework, and generalizations are presented as logical extensions of simple cases.
Journal ArticleDOI
Maximum Likelihood Approaches to Variance Component Estimation and to Related Problems
TL;DR: In this paper, the authors proposed a restricted maximum likelihood (reml) approach which takes into account the loss in degrees of freedom resulting from estimating fixed effects, and developed a satisfactory asymptotic theory for estimators of variance components.
Journal ArticleDOI
Random group effects and the precision of regression estimates
TL;DR: The authors analyzes several empirical examples to investigate the applicability of random effects models and the consequences of inappropriately using ordinary least squares (OLS) estimation in the presence of random group effects.