Measurement error causes a downward bias when estimating a panel data linear regression model. The panel data context offers various opportunities to derive moment conditions that result in consistent GMM estimators. We consider three sources of moment conditions: (i) restrictions on the...

The authors study the prediction of latent variables in a finite mixture of linear structural equation models. The latent variables can be viewed as well-defined variables measured with error or as theoretical constructs that cannot be measured objectively, but for which proxies are observed....

On theoretical grounds, shareholder returns should be better explained by some version of residual income (operating profit minus a capital charge) than by a profit number solely. However, empirical evidence indicates the opposite. We first investigate whether this 'value metrics puzzle' may be...