Arnold Kling  

Immaculate Estimation

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In a very short, satirical paper, James Heckman writes,

Provided conditional density (1) is assumed, we do not need to observe a variable in order to compute its conditional expectation with respect to another variable whose density can be estimated. For example, one can extend current empirical work in a variety of areas of economics to estimate the effect of income on happiness or the effect of income inequality on democracy. We conjecture that this powerful method can be extended to the more general case when X is not observed either.

Thanks to Alex Tabarrok for the pointer.

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CATEGORIES: Economic Methods

COMMENTS (3 to date)
kaiser writes:

Is there any use to having a post which directly copy-pastes from another widely read blog, without adding any substantive content?

Les writes:

In response to kaiser: yes, it is useful, because some of us do not read Marginal Revolution all that often.

Jim McCloskey writes:

I agree with Les. I read Kling more than I read MR. Also the fact that both Kling and Tabarrok thought it was interesting made me click through to the PDF which was funny!

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