Simulation extrapolation method for measurement error: A review

Measurement error is pervasive in statistics due to the non-availability of authentic data. The reasons for measurement error mainly relate to cost, convenience, and human error. Measurement error can result in non-negligible bias due to attenuated estimates, reduced power of statistical tests, and lower coverage probabilities of the coefficient estimators in a regression model. Several methods have been proposed to correct for measurement error, all of which can be grouped into two broad categories based on the underlying model-functional and structural. Functional models provide flexibility and robustness to estimators by placing minimal or no assumptions on the distribution of the mismeasured covariate or by treating them as a fixed entity, as opposed to a structural model which treats the underlying mismeasured covariates as random with a specified structure. The simulation extrapolation method is one method that is used for the partial correction of measurement error in both structural and functional models. Reviews of measurement error correction techniques are available in the literature. However, none of the previously conducted reviews has exclusively focused on simulation extrapolation and its application in continuous measurement error models, despite its widespread use and ease of application. We attempt to close this gap in the literature by highlighting its development over the past two and a half decades.

Automated summary

Measurement error is common in statistics due to various reasons such as cost, convenience, and human error. It can result in biases, reduced power of statistical tests, and lower coverage probabilities in regression models. There are two broad categories of methods to correct for measurement error - functional models and structural models. Simulation extrapolation is one method that can be used for partial correction in both types of models.