Journal of Economic and Social Measurement - Volume 33, issue 1

Authors: Stokes, Houston H.

Article Type: Research Article

Abstract: Although it is possible to test the calculation accuracy of a software system's implementation of OLS using sample datasets that have been extensively studied and have benchmarked answers, this approach will not help access the calculation accuracy of a user's …model for which such answers are not available. Since in theory estimated residuals of an OLS model are required to be orthogonal to the right-hand-side variables, this paper investigates the impact of changes in data precision and calculation method on the software's success in achieving this goal. In attempting estimation of an OLS model the investigator must make two critical decisions. The first decision is the precision of the data used in the calculation, both how it was loaded and whether its precision was subsequently increased for the actual calculation. The second and related decision is the calculation method. To investigate these tradeoffs, two rather simple and well known data sets that do not exhibit extreme multicollinearity are used to illustrate the data precision / calculation method accuracy tradeoff. Show more

DOI: 10.3233/JEM-2008-0302

Citation: Journal of Economic and Social Measurement, vol. 33, no. 1, pp. 1-17, 2008

Authors: Balk, Bert M.

Article Type: Research Article

Abstract: The index number problem is known as that of decomposing aggregate value change, in ratio or difference form, into two, ideally symmetric, factors. This note comments on a recent contribution of Casler [6].

Keywords: Index number theory, ideal indices, decomposition

DOI: 10.3233/JEM-2008-0295

Citation: Journal of Economic and Social Measurement, vol. 33, no. 1, pp. 19-25, 2008

Authors: Yun, Myeong-Su

Article Type: Research Article

Abstract: It is well-known that the standard Oaxaca decomposition method on wage differentials produces arbitrary results when calculating the coefficients effect of sets of dummy variables: the estimated sum of coefficients effects of sets of dummy variables is not invariant to …the choice of reference groups. We generalize this identification problem in the detailed Oaxaca decomposition and its solution based on a normalized equation to a decomposition analysis for differences in the first moment where linear or non-linear (e.g., probit or logit) models can be used for estimation. We provide a practical and simple algorithm to derive the normalized equation, and show that using normalized equation does not change the size and inference of the overall characteristics and coefficients effects. Show more

Keywords: Detailed decomposition, identification, characteristics effect, coefficients effect, normalized equation

DOI: 10.3233/JEM-2008-0296

Citation: Journal of Economic and Social Measurement, vol. 33, no. 1, pp. 27-38, 2008

Authors: Bricker, Jesse | Engelhardt, Gary V.

Article Type: Research Article

Abstract: This paper provides new evidence on the extent of measurement error in respondent-reported earnings data by exploiting detailed W-2 records matched to older workers in the Health and Retirement Study (HRS). There is a negative correlation between the measurement error …and the true value of earnings as measured by the W-2 records, which indicates the presence of non-classical measurement error. Yet for men and women, this error shows little correlation with a standard set of cross-sectional earnings determinants. Quantitatively, the bias from using self-reported earnings, either as a dependent or explanatory variable, is larger than those from existing studies of the CPS and PSID. Show more

Keywords: Measurement error, earnings

DOI: 10.3233/JEM-2008-0297

Citation: Journal of Economic and Social Measurement, vol. 33, no. 1, pp. 39-61, 2008

Authors: Cappiello, Antonio

Article Type: Research Article

Abstract: This paper can be a reference model for those countries that are currently experiencing a development phase with socio-economic features comparable with those of the Mozambican economy. A survey was required for obtaining more exhaustive estimations for National Accounts and, …at the same time, for building a benchmark of social evaluation for planning poverty reduction strategies. Moreover, with this survey the national statistical institute of Mozambique (INE) has also analysed the agricultural production (in most cases represented by "production for auto-consumption"), often coming from secondary activities of households which are located in the urban area and that, as main activity, conduct extra-agricultural activities. Show more

Keywords: Non observed economy, informal sector, statistical surveys, national accounts, international cooperation

DOI: 10.3233/JEM-2008-0298

Citation: Journal of Economic and Social Measurement, vol. 33, no. 1, pp. 63-87, 2008