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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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Perception or Reality, What Matters Most When it Comes to Crime in Your Neighbourhood?
TL;DR: In this paper, the authors explored the contribution of real and perceived crime in an individual's local area to their self-reported life satisfaction and found that perceived rates of crime have an adverse impact on life satisfaction beyond those associated with real crime.
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The impact of country-level factors on the use of new work practices
TL;DR: In this paper, the authors analyzed the impact of country-level factors on the use of new work practices such as job rotation, autonomous teams, job autonomy, and upward communication.
Journal ArticleDOI
New estimates of elasticity of demand for healthcare in rural China
TL;DR: No significant difference is detected between sensitivity of outpatient services and sensitivity of inpatient services, responding to own-price change and, from a cost-effectiveness perspective, changing outpatient price is at least as effective as changing inpatient price to adjust demand of health care.
Journal ArticleDOI
Export Spillovers: Opening the Black Box
TL;DR: In this paper, the importance of export spillovers in a firm's decision to enter specific export markets and extends the current state of the literature by assessing different mechanisms through which they may occur, namely (i) labour movement, (ii) intra-industry spillovers and (iii) inter industry linkages.
Journal ArticleDOI
Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin:
TL;DR: In this article, the authors estimate several specifications of a hedonic price equation to establish whether distance to, and density of, cultural heritage site is capitalised into housing prices in Greater Dublin, Ireland.
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.