Attenuation bias, recall error and the housing wealth effect

Yvonne McCarthy and Kieran McQuinn

No 06/RT/14, Research Technical Papers from Central Bank of Ireland

Abstract: The greater use of microeconomic and survey based data in addressing key financial stability related questions is a natural outcome of the recent financial crisis. Amongst other benefits, the use of such data enables a more precise understanding of the differing attitudes and responses of individual agents such as households to financial shocks. However, some difficulties can arise with the use, in particular, of survey data in this regard. In this paper we calculate measurement error in the house prices “recalled” by a representative sample of mortgaged Irish households and illustrate the degree of attenuation bias consequently introduced into estimates of housing wealth effects, when recall as opposed to actual house prices are used.

Keywords: Attenuation Bias; Recall Error; Consumption; House Prices. (search for similar items in EconPapers)
JEL-codes: C81 D12 E21 (search for similar items in EconPapers)
Date: 2014-03
New Economics Papers: this item is included in nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://centralbank.ie/docs/default-source/publica ... -06rt14.pdf?sfvrsn=8

Related works:
Journal Article: Attenuation Bias, Recall Error and the Housing Wealth Effect (2016)
Working Paper: Attenuation Bias, Recall Error and the Housing Wealth Effect (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbi:wpaper:06/rt/14

Access Statistics for this paper

More papers in Research Technical Papers from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().