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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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Direct democracy and life satisfaction revisited: new evidence for Switzerland
TL;DR: The authors re-evaluate the relation between cantonal direct democracy and perceived subjective well-being in Switzerland using new data from the Swiss Household Panel and find that once language is controlled for, no robust significant relationship between the extent of direct democracy in Switzerland and life satisfaction can be observed.
Journal ArticleDOI
Quasi-experimental study designs series – Paper 7: assessing the assumptions
Till Bärnighausen,Till Bärnighausen,Catherine E. Oldenburg,Peter Tugwell,Christian Bommer,Cara Ebert,Mauricio Lima Barreto,Eric W. Djimeu,Noah Haber,Hugh Waddington,Peter C. Rockers,Barbara Sianesi,Jacob Bor,Günther Fink,Jeffrey C. Valentine,Jeffrey Tanner,T. D. Stanley,Eduardo Sierra,Eric J. Tchetgen Tchetgen,Rifat Atun,Sebastian Vollmer +20 more
TL;DR: The concepts underlying five important quasi-experimental designs: Instrumental Variables, Regression Discontinuity, Interrupted Time Series, Fixed Effects, and Difference-in-Differences designs are described.
Journal ArticleDOI
Are management‐based regulations effective? Evidence from state pollution prevention programs
TL;DR: In this article, the authors evaluate the effectiveness of management-based regulation by taking advantage of policy variation that occurred when 14 states adopted such regulations for toxic chemical control in the 1990s.
Journal ArticleDOI
Climate change may alter human physical activity patterns
TL;DR: Obradovich et al. as mentioned in this paper conducted an empirical investigation of the relationship between meteorological conditions, physical activity and future climate change, and showed that both cold and acutely hot temperatures, as well as precipitation days, reduce physical activity.
Journal ArticleDOI
Wages and Unemployment in an Urban African Labour Market
TL;DR: The authors found that urban labor markets in Africa exhibit a wage curve similar to those found in the United States, Britain, Canada and other developed countries, which is consistent with the model of wage determination developed by C. Shapiro and J. Stiglitz and D. Blanchflower and A. Oswald.
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.