Berkson errors are commonplace in empirical microeconomics and occur whenever we observe an average in a specified … for gasoline in the U.S., accounting for Berkson errors is found to be quantitatively important for estimating price … effects and for welfare calculations. Imposing the Slutsky shape constraint greatly reduces the sensitivity to Berkson errors. …

Berkson errors are commonplace in empirical microeconomics and occur whenever we observe an average in a specified … for gasoline in the U.S., accounting for Berkson errors is found to be quantitatively important for estimating price … effects and for welfare calculations. Imposing the Slutsky shape constraint greatly reduces the sensitivity to Berkson errors. …