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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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The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany
Julia Bronnmann,Frank Asche +1 more
TL;DR: In this article, the authors used a unique dataset to identify attributes such as species, product form, processing form and size in the German seafood market and found that private label products are discounted by 20% while branded products achieve substantial price premiums, as do fish products from aquaculture.
Journal ArticleDOI
Alternative diff-in-diffs estimators with several pretreatment periods
Ricardo Mora,Iliana Reggio +1 more
TL;DR: In this article, the identification of treatment effects using difference-in-differences estimators when several pretreatment periods are available is dealt with, and a family of identifying n...
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Taming the Herd? Foreign Banks, the Vienna Initiative and Crisis Transmission
Ralph de Haas,Ralph de Haas,Ralph de Haas,Yevgeniya Korniyenko,Alexander Pivovarsky,Teodora Tsankova +5 more
TL;DR: In this article, the authors use detailed data on over 350 banks in emerging Europe to analyze how bank ownership and the Vienna Initiative impacted credit growth during the Great Recession, finding no evidence of negative spillovers from countries where banks signed commitment letters to countries where they did not.
Journal ArticleDOI
Parental leave reforms and the employment of new mothers: Quasi-experimental evidence from Japan
TL;DR: The authors assesses the impact of changes in the parental leave income replacement rate on job continuity of new mothers after childbearing and find that the two reforms had no signicant effect on the job continuity.
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Specialization, outsourcing and wages
TL;DR: In contrast to the standard approach in the literature, the authors focus on domestic outsourcing as well as foreign outsourcing and argue that if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic outsourcing tends to increase wages for both unskilled and skilled labor.
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.