Estimation of a Heterogeneous Demand Function with Berkson Errors
Estimation of a Heterogeneous Demand Function with Berkson Errors
Abstract Berkson errors are commonplace in empirical microeconomics. In consumer demand, this form of measurement error occurs when the price an individual pays is measured by the (weighted) average price paid by individuals in a group (e.g., a county) rather than the true transaction price. We show the importance of …