Opposing measurement biases strengthen confidence in the financialization trend

Evidence

This very concrete example makes a general point:the biases of the two measures of financialization tend in opposite directions with respect to the implications of outsourcing.Thus,the fact that both measures show the same trend in spite of these opposite biases increases confidence that outsourcing does not account for the patterns observed in the data. — Greta R. Krippner, The Financialization of the American…, 85

Categorization

• QUESTION: A methodological nicety worth revisiting: the logic of convergent measures with divergent biases is a reusable validity argument.
• XREF: connects to: Measuring finance’s rise by profits misleads if grouped under services. — Greta R. Krippner, The Financialization of the American…, 21; Measuring profits rather than employment reveals financialization as the dominant economic trend — Greta R. Krippner, The Financialization of the American…, 37; Financialization can be measured by comparing non-financial firms’ portfolio income to their cash flow. — Greta R. Krippner, The Financialization of the American…, 47 (+1 more)

Related

• Measuring profits rather than employment reveals financialization as the dominant economic trend (similarity 0.86)
• Financialization must be measured by profit generation, not employment or output (similarity 0.85)
• Measuring finance’s rise by profits misleads if grouped under services. (similarity 0.84)
• Financialization can be measured by comparing non-financial firms’ portfolio income to their cash flow. (similarity 0.81)
• Counterfactual independence assumptions likely understate financialization’s true inequality impact (similarity 0.80)
• Financialization is measured as the ratio of financial receipts to business receipts. (similarity 0.79)
• Depreciation allowances bias both profit and cash-flow measures of financialization in opposite directions. (similarity 0.79)
• Financialization does not measurably raise firm profits or financial-asset productivity. (similarity 0.79)
• An accumulation-centred view measures economic change by profit location. (similarity 0.79)
• Financialization both derives profits from finance and drains capital from productive investment (similarity 0.78)