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Norwegian

A Note on the Weibull Distribution and Time Aggregation Bias

Authors:

Røed, Knut and Zhang, Tao

Year:

2002

Reference:

Applied Economics Letters

Vol. 9, No.7, 469-472

Summary

The application of continuous time Weibull models on discrete unemployment duration data may result in severely biased baseline estimates. The bias can be substantial even for weekly duration data, and it is seriously aggravated if the Weibull model is erroneously mixed with a Gamma distribution for unobserved heterogeneity.

JEL:

C41

Keywords:

Unemployment duration, Weibull model, Time aggregation bias

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1203 - Sorting, exposed groups and labour market programmes

Financing:

Forskningsrådet