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Author: | Portela, M. Alessie, R. Teulings, C. |
Title: | Measurement error in education and growth regressions |
Journal: | Scandinavian Journal of Economics
2010 : SEP, VOL 112:3 p. 618-639 |
Index terms: | regression analysis education growth bias quantitative techniques |
Freeterms: | measurement errors |
Language: | eng |
Abstract: | This study finds the use of the perpetual inventory method for the construction of education data per country leading to systematic measurement error and analyzes its effect on growth regressions. A methodology is suggested for correcting this error. The standard attenuation bias implies that using the corrected data would lead to a higher coefficient. However, our regressions reveal the opposite. We discuss the reasons why this is the case. |
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