Measurement error in education and growth regressions
| Authors |
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| Publication date | 2010 |
| Journal | The Scandinavian Journal of Economics |
| Volume | Issue number | 112 | 3 |
| Pages (from-to) | 618-639 |
| Organisations |
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| 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
(Final published version)
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