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Oh No! I Got the Wrong Sign! What Should I Do?


  • Peter E. Kennedy


Getting a "wrong" sign in empirical work is a common phenomenon. Remarkably, econometrics textbooks provide very little information to practitioners on how this problem can arise. The author exposits a long list of ways in which a wrong sign can occur and how it might be corrected.

Suggested Citation

  • Peter E. Kennedy, 2005. "Oh No! I Got the Wrong Sign! What Should I Do?," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(1), pages 77-92, January.
  • Handle: RePEc:taf:jeduce:v:36:y:2005:i:1:p:77-92
    DOI: 10.3200/JECE.36.1.77-92

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    2. Alberto Abadie, 2020. "Statistical Nonsignificance in Empirical Economics," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 193-208, June.
    3. Bai, Yiyi & Okullo, Samuel J., 2023. "Drivers and pass-through of the EU ETS price: Evidence from the power sector," Energy Economics, Elsevier, vol. 123(C).
    4. Pesaran, M. Hashem & Smith, Ron P., 2014. "Signs of impact effects in time series regression models," Economics Letters, Elsevier, vol. 122(2), pages 150-153.
    5. Michal Karas & Mária Režòáková, 2023. "A novel approach to estimating the debt capacity of European SMEs," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 551-581, June.
    6. Santos, Luca J. & Oliveira, Alessandro V.M. & Aldrighi, Dante Mendes, 2021. "Testing the differentiated impact of the COVID-19 pandemic on air travel demand considering social inclusion," Journal of Air Transport Management, Elsevier, vol. 94(C).
    7. Mohamed Boly, 2018. "CO 2 mitigation in developing countries: the role of foreign aid," Working Papers halshs-01740881, HAL.
    8. Rieckmann, Johannes, 2015. "Determinants of drinking water treatment and hygiene habits in provincial towns in Yemen," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113183, Verein für Socialpolitik / German Economic Association.
    9. Christian Bellak & Markus Leibrecht & Jože P. Damijan, 2009. "Infrastructure Endowment and Corporate Income Taxes as Determinants of Foreign Direct Investment in Central and Eastern European Countries," The World Economy, Wiley Blackwell, vol. 32(2), pages 267-290, February.
    10. Yanliang Yu & Shahzad Alvi & Saira Tufail & Shahzada M. Naeem Nawaz & Michael Yao-Ping Peng & Nauman Ahmad, 2022. "Investigating the role of health, education, energy and pollution for explaining total factor productivity in emerging economies," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-7, December.
    11. Markus Leibrecht & Claudia Hochgatterer, 2012. "Tax Competition As A Cause Of Falling Corporate Income Tax Rates: A Survey Of Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 616-648, September.
    12. Khan, Umair & Khalid, Umair & Farooq, Fatima, 2021. "Endogeneity Quagmire Empirical Evidence from Telecommunication Industry of Pakistan," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(4), pages 955-967, December.
    13. Hu, Bo & Zhou, P., 2022. "Can the renewable power consumption guarantee mechanism help activate China's power trading market?," Energy, Elsevier, vol. 253(C).
    14. Nadezhda V. Baryshnikova & Ngoc T.A. Pham & Maria M. Wihardja, 2016. "Does Political and Economic Inequality Affect Institutional Quality?," The Economic Record, The Economic Society of Australia, vol. 92(297), pages 190-208, June.
    15. Markus Leibrecht & Christian Bellak, 2009. "Does the impact of employment protection legislation on FDI differ by skill-intensity of sectors? An empirical investigation," Discussion Papers 09/21, University of Nottingham, GEP.

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