Abstract

We consider the single equation errors in variables model and assume that a researcher is willing to specify upper bounds on the possible measurement errors in the exogenous variables. We prove that as a result the set of possible ML estimates is bounded by an ellipsoid. The result is generalized to IV estimation of a structural equation of a simultaneous system, which has only endogenous variables on the right hand side.KeywordsMaximum Likelihood EstimateExogenous VariableHousehold HeadEndogenous VariableAsymptotic BiasThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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