Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322645 
Year of Publication: 
2004
Series/Report no.: 
Discussion Papers Series No. 04-14
Publisher: 
Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute, Utrecht
Abstract: 
The perpetual inventory method used for the construction of education data per country leads to systematic measurement error. This paper analyses the effect of this measurement error on GDP regressions. There is a systematic difference in the education level between census data and observations constructed from enrolment data. We discuss a methodology for correcting the measurement error. The standard attenuation bias suggests that using these corrected data would lead to a higher coe.cient. Our regressions reveal the opposite. We discuss why the measurement error yields an overestimation. Our analysis contributes to an explanation of thedifference between regressions based on 5 and on 10 year first–differences.Keywords: growth, education, measurement error
Subjects: 
growth
education
measurement error
Document Type: 
Working Paper

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