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Measurements of ellipticities of background galaxies are sensitive to the reduced shear, the cosmic shear divided by (1-) where is the projected density field. We compute the difference between shear and reduced shear both analytically and with simulations. The difference becomes more important on smaller scales, and will impact cosmological parameter estimation from upcoming experiments. A simple recipe is presented to carry out the required correction.
Dodelson et al. (Tue,) studied this question.