Naga, Ramses Abul; Cowell, Frank - Départment d'économétrie et d'économie politique … - 2002
The prediction approach proposed by Dearden, Machin and Reed (DMR) consists in (1) regressing the observed incomes of the child and parent families on separate sets of predetermined variables, and (2) regressing the child's predicted income on that of the parents. Conceptually, this estimator...