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Consider the following regression model: = + + + + + Suppose you have obtained data on white-collar from the U.S. government. As the U.S.
Consider the following regression model: = + + + + + Suppose you have obtained data on white-collar from the U.S. government. As the U.S. government utilizes the tax data for income information, you can rely on it. Education value for each observation is given by the days of completed schooling, so you do not need to worry about measurement error there as well. Ifthemeasurementerrorinsavingsisnotcorrelatedwithanyoftheregressors,determinethe direction of bias, if exists, in your OLS estimates? Is there any (other) implications of this measurement error
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