Besides, simple extrapolation of historical rates tends to misestimate
future business-as-usual deforestation levels, as these do not incorporate the development state-related variation in a country's deforestation rate.
Investors frequently misestimate
or conflate their risk tolerance and their risk capacity.
led to a still-compounding tragedy in the Middle East.
Hence, FCIs estimated taking into account a limited number of factors could potentially misestimate
the financial performance of the overall economy.
Congruence studies which compare observer-rated pain with PRSP confirm that caregivers frequently misestimate
patient pain and that incongruence may include both under- and overestimation of PSRP .
was big but inconsequential, at least in the short term.
If a large-scale spike in corporate frauds (as with Enron and others) were to have effects on liquidity, propensity to hoard, or the use of investment intermediaries, rather than simply an effect on how much investors would charge to invest in equity securities, then such a model would misestimate
the effects of frauds and of regulations designed to reduce fraud.
24) This is the case even if the total value of a new medical technology exceeds its total cost, (25) and even if patients sometimes also inefficiently underconsume care because they misestimate
its value or because they can externalize high costs that arise tomorrow when they fail to take cheaper preventative measures today.
Thus, in this study, loss-averse individuals are more likely to misestimate
in the direction of lower debt.
Either way, an event study focusing on a time frame that captures only the initial reaction and not the subsequent correction may misestimate
the total impact of the announcement.
121) To illustrate, although people generally hold reasonable estimates of the relative lethality of various potential causes of death, they systematically misestimate
the frequency of causes of death that tend to be under- or over-publicized, so that the risk of homicide is dramatically overestimated, but the risk of death by stroke is underestimated.
Gustman and Steinmeier (2004, 102) concluded that "models of retirement and saving that assume perfect foresight and planning are likely to misestimate
the key parameters that supposedly drive retirement and saving behavior.