# measurement error

## Regressions with a Mis-measured, Binary Outcome

Many outcomes of interest in economics are binary. For example, we may want to learn how employment status $$Y^*$$ varies with demographics $$X$$, where $$Y^*=1$$ means “employed” and $$Y^*=0$$ means unemployed or not in the labor force.

## Beyond Classical Measurement Error

Pop Quiz: If $$D^*$$ and $$D$$ are binary random variables and $$D$$ is a noisy measure of $$D^*$$, is it possible for the measurement error $$W \equiv D - D^*$$ to be classical?