Estimation Procedure When Variables are Subject to Measurement Error

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Abstract

Discusses the Wald method and the Instrumental Variables method of obtaining consistent estimates when variables are subject to measurement error. The merit of these methods over the Least Squares method is illustrated through their application in estimating consumption function and income determination model using Indian annual time series data for the period 1950-51 to 1970- 71. It thus provides consistent estimates of marginal propensity to consume and timeless Keynesian multiplier for India.

Additional Information

Product Type Technical Note
Reference No. ECO0205TEC
Title Estimation Procedure When Variables are Subject to Measurement Error
Pages 9
Published on Jan 1, 1975
Authors Gupta, G S; Chawla, Deepak;
Area Economics (ECO)
Sector Miscellaneous

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