Inman, Robert P. - National Bureau of Economic Research (NBER) - 2008
correlated with omitted variables leading to a downward bias in estimates of income's effects and an upward bias in estimates of … aid's effects. Third, it's a specification problem: the representative citizen either fails to observe lump-sum aid, or … sees aid but mis-perceives its impact as an average price effect, or finally, sees and understands aid's budgetary effects …