Lecture Notes on Measurement Error
1d= . Thus the results from the standard regression and from the reverse regression will bracket the true coe¢ cient, i.e. plim b < < plim b r. Implicitly, this bracketing result uses the fact that we know that ˙ 2 and ˙ u have to be positive. The bounds of this interval are obtained whenever one of the two variances is zero. This implies
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