Journal ArticleDOI
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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Inference in difference-in-differences revisited
TL;DR: Monte Carlo evidence is provided for four points that it is possible to obtain tests of the correct size even with few groups, and in many settings very straightforward methods will achieve this.
Journal ArticleDOI
The consequences of concluding codecision early: trilogues and intra-institutional bargaining success
Anne Rasmussen,Christine Reh +1 more
TL;DR: In this paper, the authors compare actors' bargaining success across readings under codecision in a dataset of salient files and find evidence of distributional consequences when controlling for inter-institutional conflict and file characteristics.
Journal ArticleDOI
The role of unemployment in wage determination: further evidence on the wage curve from Turkey
Ipek Ilkkaracan,Raziye Selim +1 more
TL;DR: In this paper, the authors present an empirical estimation of the correlation between wages and regional unemployment rates in Turkey, more specifically it explores the role of regional unemployment rate in wage determination.
ReportDOI
Using Randomization in Development Economics Research: A Toolkit
TL;DR: In this article, the authors present a practical guide for researchers, students and practitioners wishing to introduce randomization as part of a research design in the field, including the rationale for the use of randomization, as a solution to selection bias and a partial solution to publication biases.
Journal ArticleDOI
School Choice, Universal Vouchers and Native Flight from Local Schools
TL;DR: In this article, the authors test the hypothesis that Danes are more likely to opt out of their local public school if it has a large concentration of immigrant pupils and find that only 20 per cent of the immigrant population who speak Danish at home respond to higher immigrant concentrations by opting out.
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.