Measurement error in education and growth regressions

Authors
Publication date 2010
Journal The Scandinavian Journal of Economics
Volume | Issue number 112 | 3
Pages (from-to) 618-639
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract The use of the perpetual inventory method for the construction of education data per country leads to systematic measurement error. This paper analyzes its effect on growth regressions. We suggest a methodology for correcting this error. The standard attenuation bias suggests that using these corrected data would lead to a higher coefficient. Our regressions reveal the opposite. We discuss why this is the case.
Document type Article
Language English
Published at https://doi.org/10.1111/j.1467-9442.2010.01613.x
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