Non-response Bias in Household Inflation Expectations Surveys

Meltem Chadwick, Rennae Cherry and Jaqueson Galimberti

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper uses micro-data from the Reserve Bank of New Zealand’s Household Inflation Expectations survey to obtain a more accurate read of households’ true inflation expectations by understanding how different demographic groups respond (or do not respond) to specific questions in the survey. Using a Heckman selection model, we assess whether there is item non-response bias in the survey by comparing the demographic characteristics of responders and non-responders. We quantify and demonstrate how to adjust for bias in aggregate (mean) measures of inflation expectations caused by item non-response. We show that there is a positive bias, and the aggregate inflation expectation series shifts down after the adjustment.

Keywords: inflation expectations; household surveys; item non-response; demographic heterogeneity (search for similar items in EconPapers)
JEL-codes: C83 D84 E31 E71 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-06
New Economics Papers: this item is included in nep-mon
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https://cama.crawford.anu.edu.au/sites/default/fil ... rry_galimberti_0.pdf

Related works:
Working Paper: Nonresponse Bias in Household Inflation Expectations Surveys (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2023-28

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