Computing regression statistics from grouped data

Subtitle:

Article type: Research Article

Authors: Schwiebert, Jörg

Affiliations: Leuphana University Lüneburg, Institute of Economics, Scharnhorststr. 1, 21335 Lüneburg, Germany. Tel.: +49 4131 677 2312; Fax: +49 4131 677 2026; E-mail: schwiebert@leuphana.de

Abstract: This paper considers regression techniques for grouped data. In particular, it is shown how regression statistics obtained from individual level data can be replicated by means of grouped data. Three common regression approaches are considered: ordinary least squares, instrumental variables and nonlinear least squares regression. Also provided is code to implement the grouped-data techniques in the econometric software package Stata. An empirical example illustrates that the grouped-data formulas indeed replicate the statistics obtained from the individual level data. It is also argued why grouped data are important for empirical research.

Keywords: Data confidentiality, grouped data, instrumental variables, nonlinear least Squares, ordinary least squares

DOI: 10.3233/JEM-150416

Journal: Journal of Economic and Social Measurement, vol. 39, no. 4, pp. 283-303, 2014