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An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units
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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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Fuel poverty as a major determinant of perceived health: the case of France
Elie Lacroix,Corinne Chaton +1 more
TL;DR: It may be appropriate to reduce the impacts of fuel poverty to provide support for the most vulnerable categories of individuals with respect to the health impacts offuel poverty and cold homes, e.g., chronic patients who experience difficulty heating their homes.
Journal ArticleDOI
Knowledge Creates Markets: The Influence of Entrepreneurial Support and Patent Rights on Academic Entrepreneurship
Dirk Czarnitzki,Thorsten Doherr,Katrin Hussinger,Katrin Hussinger,Paula Schliessler,Andrew A. Toole +5 more
TL;DR: In this article, an exogenous change in German Federal law was examined to examine how entrepreneurial support and the ownership of patent rights influence academic entrepreneurship, and they found no evidence that the new infrastructure resulted in an increase in start-up companies by university researchers.
Journal ArticleDOI
The income elasticity of air travel: a meta-analysis.
TL;DR: This paper examined the disparity in estimates of the income elasticity of air travel across the literature by applying meta-regression techniques and found that while the authors' preferred baseline of 1.186 is consistent with air travel being a luxury and a slightly immature market, there are several features of the literature which sway the expected income elasticities away from this baseline.
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Guns and Fear A One-Way Street?
Will Hauser,Gary Kleck +1 more
TL;DR: This paper found that higher fear among non-owners encourages them to become gun owners, but lower fear among gun owners does not encourage gun relinquishment, suggesting the relationship between guns and fear may be asymmetrical.
Posted Content
Intergenerational mobility in the very long run: Florence 1427-2011
Guglielmo Barone,Sauro Mocetti +1 more
TL;DR: In this article, the authors examined intergenerational mobility in the very long run, across generations that are six centuries apart, exploiting a unique dataset containing detailed information at the individual level for all people living in the Italian city of Florence in 1427.
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.