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Berkson errors are commonplace in empirical microeconomics and occur whenever we observe an average in a specified group rather than the true individual value. In consumer demand this form of measurement error is present because the price an individual pays is often measured by the average price...
Persistent link: https://www.econbiz.de/10011935703
Berkson errors are commonplace in empirical microeconomics and occur whenever we observe an average in a specified group rather than the true individual value. In consumer demand this form of measurement error is present because the price an individual pays is often measured by the average price...
Persistent link: https://www.econbiz.de/10011941552
We construct a peer effects model where mean expenditures of consumers in one's peer group affect utility through perceived consumption needs. We provide a novel method for obtaining identification in social interactions models like ours, using ordinary survey data, where very few members of...
Persistent link: https://www.econbiz.de/10013382077
The impact of measurement error in explanatory variables on quantile regression functions is investigated using a small variance approximation. The approximation shows how the error contaminated and error free quantile regression functions are related. A key factor is the distribution of the...
Persistent link: https://www.econbiz.de/10011644163
Since the late 90s, Regression Discontinuity (RD) designs have been widely used to estimate Local Average Treatment Effects (LATE). When the running variable is observed with continuous measurement error, identification fails. Assuming non-differential measurement error, we propose a consistent...
Persistent link: https://www.econbiz.de/10011664486
The paper analyzes one case of the endogeneity problem, namely, the presence of measurement error in consumer expenditures by estimation of the demand system according to the household sample surveys. Based on factor analysis a novel approach is proposed and tested. It allows weakening the bias...
Persistent link: https://www.econbiz.de/10011186464
We use data from eight different consumption questionnaires randomly assigned to 4,000 households in Tanzania to obtain evidence on the nature of measurement errors in estimates of household consumption. While there are no validation data, the design of one questionnaire and the resources put...
Persistent link: https://www.econbiz.de/10010607895
We construct a peer effects model where mean expenditures of consumers in one's peer group affect utility through perceived consumption needs. We provide a novel method for obtaining identification in social interactions models like ours, using ordinary survey data, where very few members of...
Persistent link: https://www.econbiz.de/10014537014
Since the late 90s, regression discontinuity designs have been widely used to estimate local treatment effects. When the running variable is observed with continuous errors, identification fails even if the dispersion of measurement errors is small. Assuming non-differential measurement errors,...
Persistent link: https://www.econbiz.de/10010942343
Since the late 90s, Regression Discontinuity (RD) designs have been widely used to estimate Local Average Treatment Effects (LATE). When the running variable is observed with continuous measurement error, identification fails. Assuming non-differential measurement error, we propose a consistent...
Persistent link: https://www.econbiz.de/10011744513