Errors in Variables in Econometrics
Chi-Lun Cheng, John W. Van Ness
Abstract
Chi-Lun Cheng, John W. Van Ness
Abstract
This article discusses the use of instrumental variables and grouping methods in the linear errors-in-variables or measurement error model. Comparisons are made between these methods, standard measurement error model methods with side conditions, least squares methods, and replicated models. It is demonstrated that there are close relationships between these apparently diverse estimation techniques.
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This article discusses the use of instrumental variables and grouping methods in the linear errors-in-variables or measurement error model. Comparisons are made between these methods, standard measurement error model methods with side conditions, least squares methods, and replicated models. It is demonstrated that there are close relationships between these apparently diverse estimation techniques.
Key concepts: Instrumental variable, Errors-in-variables models, Econometrics, Observational error, Standard error, Statistics, Least-squares function approximation, Estimation