• Media type: Report; E-Book
  • Title: Transformations of additivity in measurement error models
  • Contributor: Eckert, R. Stephen [Author]; Carroll, Raymond J. [Author]; Wang, Naisyin [Author]
  • Published: Berlin: Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes, 1996
  • Language: English
  • Keywords: Power Transformations ; Nonlinear Models ; Transform-Both-Sides ; Regression Calibration ; Errors-in-Variables ; SIMEX ; Spline Transformations
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  • Description: In many problems one wants to model the relationship between a response Y and a covariate X. Sometimes it is difficult, expensive, or even impossible to observe X directly, but one can instead observe a substitute variable W which is easier to obtain. By far the most common model for the relationship between the actual covariate of interest X and the substitute W is W = X + U, where the variable U represents measurement error. This assumption of additive measurement error may be unreasonable for certain data sets. We propose a new model, namely h(W) = h(X) + U, where h(.) is a monotone transformation function selected from some family H of monotone functions. The idea of the new model is that, in the correct scale, measurement error is additive. We propose two possible transformation families H. One is based of selecting a transformation which makes the within sample mean and standard deviation of replicated W's uncorrelated. The second is based on selecting the transformation so that the errors (U's) fit a prespecified distribution. Transformation families used are the parametric power transformations and a cubic spline family. Several data examples are presented to illustrate the methods.
  • Access State: Open Access