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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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Crime and Residential Choice: A Neighborhood Level Analysis of the Impact of Crime on Housing Prices
TL;DR: In this article, crime is capitalized into local housing markets quickly and thus provides an early indicator of neighborhood transition, using hedonic regression to quantify the intangible cost of crime and extend the crime-housing price literature.
Journal ArticleDOI
Are Incentives for R&D Effective? Evidence from a Regression Discontinuity Approach †
TL;DR: In this paper, the authors evaluate a unique R&D subsidy program implemented in northern Italy and find that small enterprises increased their investments by approximately the amount of the subsidy they received, while larger firms did not.
Journal ArticleDOI
The Impact of Nutrition during Early Childhood on Education among Guatemalan Adults
John A. Maluccio,John Hoddinott,Jere R. Behrman,Reynaldo Martorell,Agnes R. Quisumbing,Aryeh D. Stein +5 more
TL;DR: Early childhood nutrition is thought to have important effects on education, broadly defined to include various forms of learning as discussed by the authors, and it has been shown that exposure to the intervention had a larger effect on grade attainment and reading comprehension scores for females in wealthier households.
Journal ArticleDOI
Has the Internet Fostered Inclusive Innovation in the Developing World
Caroline Paunov,Valentina Rollo +1 more
TL;DR: In this paper, the authors test for heterogeneous spillover impacts on groups of firms that are commonly less engaged in innovation and on firms with different productivity levels, and find that the returns to productivity are larger for firms that commonly engage less in innovation.
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Market access and individual wages: evidence from China
Laura Hering,Sandra Poncet +1 more
TL;DR: In this paper, the authors consider the effect of geography on wages using individual data from 56 Chinese cities and find that a significant fraction of the interindividual differences in returns to labor can be explained by the geography of market access.
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.