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The Loss in Efficiency from Using Grouped Data

Author

Listed:
  • Peter Gottschalk

    (Boston College)

  • Kathleen M. Lang

    (Boston College)

Abstract

We derive the efficiency loss from using grouped data to estimate coefficients of variables that vary across groups but not individuals within a group (e.g., state unemployment rates) when micro data are unavailable on the dependent variable. We present an empirical example of our theoretical results, and show that the efficiency loss in this application is small.

Suggested Citation

  • Peter Gottschalk & Kathleen M. Lang, 1995. "The Loss in Efficiency from Using Grouped Data," Boston College Working Papers in Economics 289., Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:289
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    File URL: http://fmwww.bc.edu/EC-P/wp289.pdf
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    References listed on IDEAS

    as
    1. Amemiya, Takeshi, 1978. "A Note on a Random Coefficients Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 793-796, October.
    2. Jonathan Gruber & Alan B. Krueger, 1990. "The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensations Insurance," Working Papers 659, Princeton University, Department of Economics, Industrial Relations Section..
    3. Jonathan Gruber & Alan B. Krueger, 1991. "The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 111-144, National Bureau of Economic Research, Inc.
    4. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    grouped data; relative efficiency;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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