Measurement error can impact estimator precision, obscure estimated
relationships between variables, and distort the estimated intertemporal
behavior of important economic characteristics. A commonly
known model for measurement error assumes that measured income is
the product of true income and a multiplicative measurement error,
which is distributed independently of the level of true income. Based
on this model, we derive a collection of flexible parametric forms for
the distribution of measured income. We feel that this work could serve
as an important reference for measurement error modeling.