Open Access Open Access  Restricted Access Subscription Access

Testing For Aggregation Bias in a Non-Linear Framework: Some Monte Carlo Results

Jac C. Heckelman

Abstract


Researchers modeling the behavior of individual people or firms are often unable to utilize micro-level data because such data are unavailable or unreliable. Faced with this dilemma, researchers often resort to using aggregate-level data. When the individual-level variable of interest is dichotomous, however, the aggregate-level model is subject to a special form of aggregation bias. Kelejian [1994] provides a methodology for testing for the presence of this form of bias. This study uses Monte Carlo analysis to evaluate the usefulness of Kelejian’s test. Using 50 units, populated by, 100, 1000 and 10,000 individuals, we find that aggregation bias is almost universally present. Unfortunately, the Kelejian test identifies the bias in fewer than half of the cases.

Keywords


Aggregation bias, ecological regression, aggregate data, logistic transformation.

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.