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Therefore, the significantly different from zero intercept can be used as a correction factor (i. The reason that a zero intercept would not be expected is that the confounding mechanism involves two intermediaries, with Z acting through one of them in varying proportion over cities, and through the other in constant proportion (absent the error terms). real income in the microdata and then tested to see which assumption yields results that are closest to the "no bias" benchmark of a zero intercept and unit slope. |
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