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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Proximity, Neighbourhood and the Efficacy of Exclusion:
TL;DR: In this article, a GIS progamme is used to develop neighbourhood characteristics that are unique to each observation, thereby allowing the evaluation of the impact of neighbourhood attributes in proximity to the dwelling.
Book
Who Wants What?: Redistribution Preferences in Comparative Perspective
David Rueda,Daniel Stegmueller +1 more
TL;DR: Rueda and Stegmueller as discussed by the authors argue that the demand for redistribution is the result of expected future income, the negative externalities of inequality, and the relationship between altruism and population heterogeneity.
Posted Content
Wrong Side of the Track? The Impact of the Minimum Wage on Gender Pay Gaps in Britain
TL;DR: In this paper, the impact of the introduction of the National Minimum Wage (NMW) in Britain on various gender wage gaps was investigated using six years of Labour Force Survey data and they concluded that there is only moderate evidence of any change in the rate of decline in the average gender pay gap.
Journal ArticleDOI
Competition in Research Activity among Economic Departments: Evidence by Negative Spatial Autocorrelation
J. Paul Elhorst,Katarina Zigova +1 more
TL;DR: In this article, the authors explored the research productivity of all academic economists employed at 81 universities and 17 economic research institutes in Austria, Germany, and German-speaking Switzerland, and found that a research unit's productivity negatively depends on that of neighboring research units weighted by inverse distances.
Journal ArticleDOI
Age-specific cyclical effects in job reallocation and labor mobility
Anne C. Gielen,Jan C. van Ours +1 more
TL;DR: In this article, the authors present an empirical analysis of job reallocation and labor mobility using matched worker-firm data for the Netherlands to investigate how firms adjust their workforce over the 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.