Journal ArticleDOI
An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units
Reads0
Chats0
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
More filters
Posted Content
Birth Order and Health of Newborns: What Can We Learn from Danish Registry Data?
TL;DR: A positive and robust birth order effect is found; lower parity children are less healthy at birth and once the authors control for health at birth, the negativeBirth order effect in educational performance further increases.
Journal ArticleDOI
Price Controls and Market Structure: Evidence from Gasoline Retail Markets
Juan Esteban Carranza,Juan Esteban Carranza,Robert Clark,Jean-François Houde,Jean-François Houde,Jean-François Houde +5 more
TL;DR: In this paper, the authors study the effect of price floor regulations on the organization and performance of markets, and show that these factors can indirectly lower productivity and possibly even prices, and test this in the context of an actual regulation imposed in the retail gasoline market in the Canadian province of Quebec and demonstrate that the policy led to more competition between smaller/less efficient stations.
Journal ArticleDOI
Retail city: the relationship between place attractiveness and accessibility to shops
TL;DR: In this article, the role of retailers as an urban amenity is explored and the relationship between place attractiveness and accessibility to shops is examined in Swedish rural and city municipalities for 2002-08, where access to stores within municipal market boundaries is found to be relevant for the place attractiveness of city municipalities.
Posted Content
Why is the share of women willing to work in East Germany larger than in West Germany? A logit model of extensive labour supply decision
TL;DR: In this paper, the authors analyzed why East German women are more willing to work than West German women, based on the German microcensus and regional data on unemployment and childcare-facilities, various logit models for the participation probability are estimated.
Journal ArticleDOI
Price premiums for ecolabelled seafood: MSC certification in Germany
TL;DR: In this paper, a hedonic price model for whitefish species on the German market is estimated that includes information on Marine Stewardship Council (MSC) labelling, the leading seafood ecolabel in Germany.
References
More filters
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.