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TitleMeasurement error in education and growth regressions
Author(s)Portela, Miguel
Alessie, Rob
Teulings, Coen
KeywordsGrowth regressions
Perpetual inventory method
Systematic measurement error
Issue dateSep-2010
JournalThe Scandinavian Journal of Economics
Abstract(s)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.
Publisher version
AccessRestricted access (UMinho)
Appears in Collections:NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica

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