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
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The Benefits of Visibility Improvement: New Evidence from the Los Angeles Metropolitan Area
TL;DR: In this article, the authors examined the impact of a specific aspect of air quality (visibility, or the ability to clearly see distant objects) on housing values and found that visibility differences are capitalized into housing values, producing a measurable hedonic price gradient.
Journal ArticleDOI
New Products and Corruption: Evidence from Indian Firms
TL;DR: This article found that corruption, functioning as a bribe tax, diminishes the probability of new products being introduced, and that sector-state bribery averages have a negative and significant impact on product innovation.
Journal ArticleDOI
Wage Effects of Unionization and Occupational Licensing Coverage in the United States
TL;DR: In this paper, the authors examined the impact of unions and licensing coverage on wage determination using new data collected on licensing statutes that are then linked to longitudinal data from the National Longitudinal Survey of Youth (NLSY79) from 1979 to 2010.
Journal ArticleDOI
Credit risk securitization and bank soundness in Europe
Tobias C. Michalak,André Uhde +1 more
TL;DR: In this paper, a unique sample of 749 cash and synthetic securitization transactions issued by 60 stock-listed bank holdings in the EU-13 plus Switzerland over the period from 1997 to 2007 was used to provide empirical evidence that credit risk securITization has a negative impact on the issuing banks' financial soundness.
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The effect of the Israeli–Palestinian conflict on child labor and school attendance in the West Bank
Michele Di Maio,Tushar K. Nandi +1 more
TL;DR: In this paper, the authors analyzed the impact of the Israeli-Palestine conflict on child labor and school attendance of Palestinian children in the West Bank between the beginning of the Al-Aqsa Intifada (September 2000) and the end of 2006.
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.