Journal ArticleDOI
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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Rent sharing and the gender wage gap in Belgium
TL;DR: In this paper, the authors investigated how rent sharing interacts with the gender wage gap in the Belgian private sector and found that individual gross hourly wages are significantly and positively related to firm profits per employee even when controlling for group effects in the residuals, individual and firm characteristics, industry wage differentials and endogeneity of profits.
Journal ArticleDOI
Spatial agglomeration and productivity in Italy: A panel smooth transition regression approach
TL;DR: The authors analyzes the nonlinearities in the impact of localization, diversity, urbanization, and competition on the TFP elasticity, showing that local competition exerts a positive effect on productivity even at high levels of competition.
Journal ArticleDOI
Outsourcing and the demand for low-skill labour in German manufacturing : new evidence
TL;DR: In this paper, the authors analyzed how international outsourcing has affected the relative demand for low skilled workers in Germany during the 1990s and found that international outsourcing had a significant negative impact on the relative need for low-skilled workers, explaining between 19% and 24% of the overall decline in the overall demand for labour.
Book ChapterDOI
Productivity and Local Workforce Composition
David C. Maré,Richard Fabling +1 more
TL;DR: In this article, the authors examined the link between firm productivity and the population composition of the areas in which firms operate and found evidence of productive spillovers from operating in areas with high-skilled workers, and with high population density.
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Economic Growth Evens-Out Happiness: Evidence from Six Surveys
TL;DR: The authors argue that the extension of various public goods helps to explain the greater happiness homogeneity in developing countries than in Western countries. But they do not consider the effect of public goods on individual happiness.
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.