Inferences About Economies of Scale Do Depend on the Form of Statistical Analysis: A Reconciliation

Feinberg and Trotta report simulation experiments of administrative scale relationships that show inference inconsistency across statistical models. Their findings are contrasted with our previous analysis (MacMillan and Daft, a) that reported inference consistency across statistical models with res...

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Bibliographic Details
Published inSocial forces Vol. 62; no. 4; pp. 1059 - 1067
Main Authors MacMillan, Alexander, Daft, Richard L.
Format Journal Article
LanguageEnglish
Published Chapel Hill, N.C The University of North Carolina Press 01.06.1984
University of North Carolina Press
Subjects
4 on Ratio Correlation
Economic models
Economies of scale
Indexing in process
Inference
Modeling
Ratio analysis
Recommendations
Simulations
Standard deviation
Statistical bias
Statistical models
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Summary:Feinberg and Trotta report simulation experiments of administrative scale relationships that show inference inconsistency across statistical models. Their findings are contrasted with our previous analysis (MacMillan and Daft, a) that reported inference consistency across statistical models with respect to definitional dependency. This paper reconciles the two sets of findings by concluding that definitional dependency is not a problem in ratio variable research, but measurement error may cause inference inconsistency. Three recommendations are suggested for investigators who use ratio variables to study organization scale and similar sociological relationships.
Bibliography:Address correspondence to Richard Daft, College of Business Administration, Department of Management, Texas A&M University, College Station, TX 77843-4221.
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ISSN:0037-7732
1534-7605
DOI:10.1093/sf/62.4.1059