UC Energy Institute
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NBER Working Papers and Publications
|December 2010||Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index|
with Hendrik Wolff, Maximilian Auffhammer: w16572
We measure and examine data error in health, education and income statistics used to construct the Human Development Index. We identify three sources of data error which are due to (i) data updating, (ii) formula revisions and (iii) thresholds to classify a country's development status. We propose a simple statistical framework to calculate country specific measures of data uncertainty and investigate how data error biases rank assignments. We find that up to 34% of countries are misclassified and, by replicating prior studies, we show that key estimated parameters vary by up to 100% due to data error.
Published: Hendrik Wolff & Howard Chong & Maximilian Auffhammer, 2011. "Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index," Economic Journal, Royal Economic Society, vol. 121(553), pages 843-870, 06. citation courtesy of
|December 2009||Profiting from Regulation: An Event Study of the EU Carbon Market|
with James B. Bushnell, Erin T. Mansur: w15572
Tradable permit regulations have recently been implemented for climate change policy in many countries. One of the first mandatory markets was the EU Emission Trading System, whose first phase ran from 2005-07. Unlike taxes, permits expose firms to volatility in regulatory costs, but are typically accompanied by property rights in the form of grandfathered permits. In this paper, we examine the effect of this type of environmental regulation on profits. In particular, changes in permit prices affect: (1) the direct and indirect input costs, (2) output revenue, and (3) the carbon permit asset value. Depending on abatement costs, output price sensitivity, and permit allocation, these effects may vary considerably across industries and firms. We run an event study of the carbon price crash on...
Published: “Profiting from Regulation: An Event Study of the EU Carbon Market.” American Economic Journal: Economic Policy. (with Howard Chong and Erin Mansur) Vol 5, No. 4. November, 2013.