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We examine economic mobility in India while rigorously accounting for measurement error. Such an analysis is imperative to fully understand the welfare effects of the rise in inequality that has occurred in India over the past few decades. To proceed, we extend recently developed methods on the...
Persistent link: https://www.econbiz.de/10012057331
Estimation of the causal effect of a binary treatment on outcomes often requires conditioning on covariates to address selection on observed variables. This is not straightforward when one or more of the covariates are measured with error. Here, we present a new semi-parametric estimator that...
Persistent link: https://www.econbiz.de/10012316918
In linear regression models, measurement error in a covariate causes Ordinary Least Squares (OLS) to be biased and inconsistent. Instrumental Variables (IV) is a common solution. While IV is also biased, it is consistent. Here, we undertake an asymptotic comparison of OLS and IV in the case...
Persistent link: https://www.econbiz.de/10014388449