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Measurement Errors in Introductory Econometric Courses

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  • John H. Herbert

    (Virginia Polytechnic Institute & State University)

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    Abstract

    This article describes an instructive method for presenting the implications of measurement error in a regression analysis for the introductory econometrics course. As distinct from other methods, this method can be used to obtain estimates of the linear relationship between measured variables without requiring specific information on the relative magnitude of the measurement errors. However, the chosen method yields a set or range of estimates for a regression coefficient rather than a point estimate. This range, commonly referred to as bounds for a regression coefficient, indicates the uncertainty in a regression coefficient due to measurement error in one or more explanatory variables.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume21/V21N1P97_108.pdf
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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 21 (1995)
    Issue (Month): 1 (Winter)
    Pages: 97-108

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    Handle: RePEc:eej:eeconj:v:21:y:1995:i:1:p:97-108

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    Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
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    Web page: http://www.ramapo.edu/eea/journal.html
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    Related research

    Keywords: Econometrics; Measurement Error; Regression;

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    Cited by:
    1. Gunter, Frank R., 2004. "Capital flight from China: 1984-2001," China Economic Review, Elsevier, vol. 15(1), pages 63-85, January.

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