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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A Bootstrap Method for Conducting Statistical Inference with Clustered Data
TL;DR: In this article, Monte Carlo simulation of an ordinary least squares (OLS) regression model was used to compare conventional standard error and robust cluster standard errors (RCSE) to that of a bootstrap method that resamples clusters of observations (BCSE).
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VAT Rebates and Export Performance in China: Firm-level Evidence
TL;DR: In this article, the role of VAT rebates in affecting Chinese exports using firm-level panel data for 2000-2006 was studied, and the empirical findings demonstrate significant and large effects of VAT rebate rebates on export volume.
Journal ArticleDOI
The Wage Expectations of European Business and Economics Students.
TL;DR: In this paper, the authors report the results of the first systematic study of the wage expectations of European university students, based on a uniform questionnaire answered by about 3,000 business and economics university students across Europe.
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Well-being and unemployment in Russia in the 1990s: Can society's suffering be individuals’ solace?
TL;DR: In this paper, the effect of regional unemployment rates on subjective well-being in post-Soviet Russia was studied and it was shown that each percentage point increase in the local unemployment rate is correlated with an increase of the average wellbeing of people in the region.
Journal ArticleDOI
Educational policies in a long-run perspective
TL;DR: Braga et al. as discussed by the authors studied the effects of educational reforms on school attainment and found support for the idea that left-wing parties support reforms that are inclusive, while rightwing parties prefer selective ones, by characterizing each group of reforms for their impact on mean years of education, educational inequality and intergenerational persistence.
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.