A note on measurement error and Euler equations: An alternative to log-linear approximations

The paper describes how to avoid taking log-linear approximations of non linear decision rules when measurement errors are present. This is achieved by imposing some distributional assumptions on these errors.

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Bibliographic Details
Published in:Economics letters 1994, Vol.45 (3), p.305-308
Main Author: Ventura, Eva
Format: Article
Language:English
Subjects:
Euler equations
GMM
Measurement
Measurement error
Panel
Online Access:Get full text
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Description
Summary:The paper describes how to avoid taking log-linear approximations of non linear decision rules when measurement errors are present. This is achieved by imposing some distributional assumptions on these errors.
ISSN:0165-1765
1873-7374
DOI:10.1016/0165-1765(94)90028-0