An equicorrelation Moulton factor in the presence of arbitrary intra-cluster correlation

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 145
Issue: C
Pages: 221-224

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This note highlights the potential pitfalls of using an equicorrelation model to estimate standard errors when the true model has arbitrary intra-cluster correlation. It derives a generalized equicorrelation Moulton factor that quantifies the potential biases in standard errors for OLS estimators. As with the famous Moulton factor, the key role is not played by the correlation of the error terms but rather by the intra-correlation of the covariates themselves.

Technical Details

RePEc Handle
repec:eee:ecolet:v:145:y:2016:i:c:p:221-224
Journal Field
General
Author Count
1
Added to Database
2026-01-26