4.1.3.4 The Consequences of Measurement Errors
As it is in other human activities, it habitually happens in economics that, when investigating a relationship, the variables involved could be measured defectively. For example, surveys often contain errors caused by the person being interviewed not remembering properly or not understanding the question correctly. However, misreporting is not the only source of inaccuracy. It sometimes happens that you have defined a variable in your model in a certain way, but the available data correspond to a slightly different definition.
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