Recent content by Svezt

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    Combining proxy variables to estimate true underlying variable

    Thanks for your answers. So, I guess my options are i) finding a theoretical argument in favor of one measure and ii) simply using the arithmetic mean.
  2. S

    Combining proxy variables to estimate true underlying variable

    Yes, I suppose that would be another way to phrase it.
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    Combining proxy variables to estimate true underlying variable

    Dear all, suppose you have several (~3-4) measures of an economic variable. These measures all come with some degree of measurement error (noise) and it is a-priori unclear which one best represents the underlying phenomen (which one intents to capture). To complicate things, the samples of the...