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Stein-rule least squares estimation: a heuristic for fallible data
journal contributionposted on 1986-01-01, 00:00 authored by Tom StanleyTom Stanley
For fallible data, 'errors-in-variables', a Steinian estimation of the independent variable yields a consistent and potentially unbiased estimator of the regression coefficient. This estimator suggests a heuristic for economic research and is illustrated by the permanent income hypothesis.