And even in rich countries, the inequality we hear so much about has been grossly mismeasured
. For example, measures of inequality of wealth, such as Thomas Piketty's, ignore the largest source of modern wealth: human capital.
When a mechanistic or scientific model is available for covariate [x.sub.ij], such as in HIV viral dynamics, the scientific model should hold not only for observed data but also for unobserved data (e.g., censored or mismeasured
or missing data), so that the model can be used to provide better "predictions" for the unobserved true covariate values.
Now, it's possible that productivity gains are just being mismeasured
. But the slowdown seems to be worldwide, including in developing countries.
On one hand, the dependent variable in their regressions--firms' level of investment--may be mismeasured
, because it may not be picking up intangible investment or investment that is more disintegrated due to globalization.
We show in Appendix C that our extended FE specification is entirely immune to both types of measurement errors under a relatively mild assumption, namely that the ratio of "mismeasured
" to observed migrants is constant within country-region pairs.
Moreover, this measurement error may be growing over time as the relative size of the group that is being mismeasured
Third, I ask the question, "Let's suppose what is allegedly being mismeasured
was actually measured.
There are those who argue that the benefits of the smart phone demonstrate that productivity growth is fundamentally mismeasured
. Yes, the consumer surplus has been omitted from GDP, but history provides a steady stream of examples of consumer welfare that has been created by inventions whose value was never included in GDP.
In this case, two wrongs make a right: A sufficiently large response to the mismeasured
natural rate will cancel out the mismeasurement in the output gap.
The first term is that with probability U(1 - [[psi].sub.NU])/[bar.U], the worker is truly unemployed--in which case he makes a transition to measured nonparticipation if he remains unemployed and this lack of change in labor market status is mismeasured
, [f.sub.UU][[psi].sub.UN], or if he transitions to nonparticipation and this change is not mismeasured
, [f.sub.UN] (1 - [[psi].sub.NU]).
On the day of the event, John received a panicked phone call from Everyday Blessings: They mismeasured
the rooms and realized Keller Williams would not have enough paint to complete the project.
Alternatively, perhaps the District's labor force is simply being mismeasured
and is tracing a path more like what we're seeing for the nation.