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"Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data". Journal of Labor Economics 23.2 (April 2005): 235-257.
The proposed inference procedure that allows for specification error also has a natural interpretation within a Bayesian framework.
The method is less susceptible to specification error than standard hedonic methods and is not subject to the sample selection bias involved in indexes that rely only on repeat sales.
All essential attributes should appear in the choice scenarios to avoid specification error in estimating the utility function [5, 26].
All essential attributes should appear in the choice scenarios to avoid specification error in estimating the utility function.
Heckman [14] introduced self-selection bias and treated the unobserved selection factors as a problem of specification error or a problem of omitted variables.
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Relaxing the assumptions of specific functional forms in studying socio-economic relationships is important to minimise specification errors and to allow the data to offer the best insights into the relationship investigated.
Conventional standard errors ignore the group structure induced by specification errors and tend to overstate the precision of the estimated program impacts.
Our results clearly show that it is possible to use formal modeling in the commercial setting effectively: we were able to locate a number of specification errors that were missed by several manual specification inspections, and used the model to derive the test cases that, by the time we left the project, doubled the number of errors discovered by Nortel testers.
The evidence does not strongly support an effect of prices on binge drinking, but this reflects measurement and specification errors.
However, because IRFs are calculated recursively in this approach, they have been criticized for being sensitive to small specification errors that always exist in practice (Teulings and Zubanov2010).
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