The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Misclassification in Binary Variables

  • Christopher R. Bollinger
Reference work entry


Misclassification of binary variables is the first case of non-classical measurement error considered. Similar to the classical errors-in-variables result, misclassification of a binary regressor leads to attenuation of slope coefficient estimates in linear regression. Classical instrumental variables will not address the problem. Bounds results under a number of different sets of assumptions can be derived. When the dependent variable is binary, misclassification also leads to slope attenuation. Some identification results are available in this case.


Binary variables Dependent variable Measurement error Misclassification Regression 

JEL Classifications

C13 C25 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Christopher R. Bollinger
    • 1
  1. 1.