2001/11/01 by Jerry A. Hausman · 2 citations
Economics, Econometrics and Finance · Mathematics · #Monetary Policy and Economic Impact #Economics of Agriculture and Food Markets #Advanced Statistical Methods and Models
paper · pdf · doi:10.1257/jep.15.4.57
openalex publication_date 2001/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
The effect of mismeasured variables in the most straightforward regression analysis with a single regressor variable leads to a least squares estimate that is downward biased in magnitude toward zero. I begin by reviewing classical issues involving mismeasured variables. I then consider three recent developments for mismeasurement econometric models. The first issue involves difficulties in using instrumental variables. A second involves the consistent estimators that have recently been developed for mismeasured nonlinear regression models. Finally, I return to mismeasured left hand side variables, where I will focus on issues in binary choice models and duration models.