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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Multilevel Modeling and Ordinary Least Squares Regression: How Comparable Are They?
TL;DR: In this article, the authors used a Monte Carlo simulation to show that coefficients of OLS models, but MLMs as well, may be biased when relevant higher level variables are omitted from a model, a situation that is likely to occur when using large-scale, secondary data sets.
Journal ArticleDOI
Profit Shifting and Tax Response of Multinational Banks
Julia Merz,Michael Overesch +1 more
TL;DR: This paper analyzed multinational banks' response to taxation and found significant tax effects on reported profits of bank subsidiaries and showed that trading gains are highly tax responsive, in particular trading gains on loan loss provisions and debt financing.
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An application of wage bargaining models to norwegian panel data
TL;DR: In this paper, the relative importance of insider versus outsider variables are estimated, controlling for firm-specific fixed effects, and it is shown that insider variables have a significant effect on wages.
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How Access to Credit Affects Self-employment: Differences by Gender during India's Rural Banking Reform
TL;DR: In this paper, the authors examined the impact of credit access on self-employment among men and women in rural labour households in India and found that credit access encourages women's self-employment as own-account workers and employers, while it discourages men's self employment as unpaid family workers.
Journal ArticleDOI
Firm Growth, European Industry Dynamics and Domestic Business Cycles
TL;DR: In this paper, the authors empirically investigated the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms and found that exporting firms and subsidiaries of multinational enterprises constitute the most stable firm cohort throughout the observed business cycle.
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.