Measurement error in imputation procedures

Rodolfo Campos and Iliana Reggio

No 1322, Working Papers from Banco de España

Abstract: We study how estimators used to impute consumption in survey data are inconsistent due to measurement error in consumption. Previous research suggests instrumenting consumption to overcome this problem. We show that, if additional regressors are present, then instrumenting consumption may still produce inconsistent estimators due to the likely correlation between additional regressors and measurement error. On the other hand, low correlations between additional regressors and instruments may reduce bias due to measurement error. We apply our fi ndings by revisiting recent research that imputes consumption data from the CEX to the PSID.

Keywords: consumption; measurement error; instrumental variables; consumer expenditure survey; panel study of income dynamics; income shocks (search for similar items in EconPapers)
JEL-codes: C13 C26 E21 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013-12
New Economics Papers: this item is included in nep-ecm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /13/Fich/dt1322e.pdf First version, December 2013 (application/pdf)

Related works:
Journal Article: Measurement error in imputation procedures (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1322

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