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Econometrics 2015, 3(4), 709-718; doi:10.3390/econometrics3040709

Measurement Errors Arising When Using Distances in Microeconometric Modelling and the Individuals’ Position Is Geo-Masked for Confidentiality

1
Department of Statistical Science, Catholic University of the Sacred Heart, Rome 00168, Italy
2
Department of Economics and Management, University of Trento, Trento 38122, Italy
*
Author to whom correspondence should be addressed.
Academic Editor: Kerry Patterson
Received: 25 August 2015 / Revised: 16 October 2015 / Accepted: 20 October 2015 / Published: 29 October 2015
(This article belongs to the Special Issue Spatial Econometrics)
View Full-Text   |   Download PDF [231 KB, uploaded 29 October 2015]   |  

Abstract

In many microeconometric models we use distances. For instance, in modelling the individual behavior in labor economics or in health studies, the distance from a relevant point of interest (such as a hospital or a workplace) is often used as a predictor in a regression framework. However, in order to preserve confidentiality, spatial micro-data are often geo-masked, thus reducing their quality and dramatically distorting the inferential conclusions. In particular in this case, a measurement error is introduced in the independent variable which negatively affects the properties of the estimators. This paper studies these negative effects, discusses their consequences, and suggests possible interpretations and directions to data producers, end users, and practitioners. View Full-Text
Keywords: spatial econometrics; spatial microeconometrics; consistency of estimates; geo-masking; confidentiality; distance evaluation spatial econometrics; spatial microeconometrics; consistency of estimates; geo-masking; confidentiality; distance evaluation
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Arbia, G.; Espa, G.; Giuliani, D. Measurement Errors Arising When Using Distances in Microeconometric Modelling and the Individuals’ Position Is Geo-Masked for Confidentiality. Econometrics 2015, 3, 709-718.

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