The financial mistakes they consider include suboptimal use of offers of low interest rates on transfers of credit card balances, misestimation
of housing values, and tolerance of excessive interest rates and fee payments.
To the extent that the reported correlations are not as precise as raw data, this approach might result in a small amount of misestimation
Grady, "Misunderstanding in Clinical Research: Distinguishing Therapeutic Misconception, Therapeutic Misestimation
, and Therapeutic Optimism," IRB: Ethics & Human Research 25, no.
In this paper, we argue that while economists' locus on such strategic cost allocations has appropriately highlighted the potential for economically meaningful distortions to economic activity, it has, to this point, overlooked a potentially powerful role that misestimation
(not merely misallocation) of common costs plays in (he creation of regulatory cross-subsidization.
Elton, Gruber, and Gultekin (1984) show that a large fraction of analyst forecast error is attributable to misestimation
of firm-specific factors rather than to misestimation
of economy or industry factors.
Using a Taylor rule framework, Orphanides (2003) attributed the inflation of the 1970s to this misestimation
of the output gap.
Since the patent on these block-buster drugs expired regardless of when the drug reached the market, causing a dramatic drop in the drug's profitability, this misestimation
was causing the loss of hundreds of millions of dollars in revenue.
In the issue of grade predictions at the start of the final, students' overestimations of their final course grade most likely result from a misestimation
of the negative effect that absences would have on their final grade.
If the difference is greater than 10 percent, interest based on the hypothetical over-payment or underpayment of tax caused by the misestimation
must be calculated and paid or received by the taxpayer.
This occurs because the DFE model imposes restrictions on the time dummies, thereby leading to the misestimation
of the effects of regional integration regimes, the expansions of which have a significant trend component.
Many, if not most, insurance calculations necessarily entail a degree of misestimation
risk because of the limits on the availability and accuracy of information.
First, gross market inefficiency-based long-horizon event studies have been criticized as suffering from some conceptual and empirical problems such as risk misestimation
, data problems including data-snooping, and the lack of a theory of market inefficiency as the null hypothesis (Kothari, 2001).