Sentence examples for unobservable effects from inspiring English sources

The specification in this form not only includes the unobservable country-specific effect but also models the regional- and industry-specific unobservable effects, and ignoring these unobservable effects may lead to under- or overestimation of convergence coefficients.

Introducing age at migration into the model to capture these unobservable effects would introduce perfect collinearity with foreign experience and foreign years of schooling.

Pooled regression, assuming homogeneity for all olive oils, may lead to biased estimates due to a correlation between independent variables and unobservable effects.

The equations are estimated using a random effects panel data routine, where the regional unobservable effects are considered to be part of a composite error term and are not necessarily fixed over time.

This test rejects the null hypothesis regarding the absence of correlation between the unobservable effects and the explanatory variables, which leads to the selection of the fixed-effect estimator.

In assessing the performance of universities, the most recent literature underlined that the efficiency scores may suffer from the presence of incidental parameters or time-invariant, often unobservable, effects that lead to biased efficiency estimates.

Similar to the approach described by Nock et al. (2007), we assume that each candidate gene has a corresponding latent variable, representing an unobservable effect of the corresponding gene on the trait.

To verify the character fixed or random of the unobservable individual effects, we use Hausman test.

Our hedonic regressions, controlling for unobservable district effects and incorporating instrumental variables, reveal that the associations of highway proximity and traffic with office prices appear to exhibit mixed results across Hong Kong's three territorial divisions.

As controlling for all these factors is difficult (some of them are unobservable), causal effects of the business environment on the size distribution in this cross-country framework are hard to pursue and we favor a prudent predictive interpretation of our results.

Hence, we assume that unobservable individual effects, such as genetic predisposition or personality, are correlated with the regressors xit.