Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left
AbstractThe effect of mismeasured variables in the most straightforward regression analysis with a single regressor variable leads to a least squares estimate that is downward biased in magnitude toward zero. I begin by reviewing classical issues involving mismeasured variables. I then consider three recent developments for mismeasurement econometric models. The first issue involves difficulties in using instrumental variables. A second involves the consistent estimators that have recently been developed for mismeasured nonlinear regression models. Finally, I return to mismeasured left hand side variables, where I will focus on issues in binary choice models and duration models.
CitationHausman, Jerry. 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left." Journal of Economic Perspectives, 15 (4): 57-67. DOI: 10.1257/jep.15.4.57
- C30 Multiple or Simultaneous Equation Models: General