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measurement, and it has become standard practice to construct income measures to mitigate these. However, remaining bias can lead … literature. We show with theory and simulations that even using a 30-year income average can result in a small positive spurious … grandfather coefficient estimate. We further propose an IV approach, showing that it is not susceptible to this spillover bias in …
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We propose a first order bias correction term for the Gini index to reduce the bias due to grouping. The first order … reveals an intuitive formula for the remaining second order bias which is useful in empirical analyses. We analyze the … it reduces a considerable share of the bias due to grouping. …
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level does not fully alleviate the bias. In fact, the magnitude and direction of the bias depend on the size of the …
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probabilities. Attenuation bias is considerably weaker in rank-based measures. Life-cycle bias is strongest in the elasticity …
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Measurement error in historical data distorts descriptive analyses based on binary classifications. Modern replications of deficiencies in retrospective CPI estimates for the 19th century show that measurement issues cause misclassification of inflationary and deflationary episodes. We therefore...
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