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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Beyond bentham - measuring procedural utility
Bruno S. Frey,Alois Stutzer +1 more
TL;DR: In this paper, the authors show that participation rights provide more procedural utility in terms of a feeling of self-determination and influence than actual participation, while foreigners cannot enjoy the corresponding procedural utility.
Journal ArticleDOI
The effect of school resources on educational attainment: evidence from Denmark
TL;DR: In this paper, the authors investigate the effect of school inputs in primary and lower secondary schools on the probability of eventually passing upper secondary or vocational education, using Danish administrative register data for a large number of young people and their parents.
Central Banks as Architects: The Federal Reserve, the Bank of England, and the Rise of the Dollar as an International Currency, 1914-1939 1
Barry Eichengreen,Marc Flandreau +1 more
TL;DR: This article showed that for foreign exchange reserves, the British pound and the US dollar shared the reserve-currency role more or less equally in the 1920s and 1930s, while the British currency dominated international transactions in the first half of the 20 th century, the US currency dominated in the second half.
Journal ArticleDOI
Real wage cyclicality in the panel study of income dynamics
TL;DR: This paper investigated the robustness of the previous results and examined whether there are important cross-sectional and demographic differences in wage cyclicality, finding that the wages of lower-income, younger, and less-educated workers exhibited greater procyclicality.
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Unequal Migration and Urbanisation Gains in China
TL;DR: The authors assess the role of internal migration and urbanization in China on the nominal earnings of three groups of workers (rural migrants, low-skilled natives, and high-skilled native) and estimate the impact of many city and city-industry characteristics that shape agglomeration economies.
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.