Microdata Adjustment by the Minimum Information Loss Principle

Joachim Merz

No 10, FFB-Discussionpaper from Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg

Abstract: Microdata have become increasingly important for economic and social analyses. One striking problem with almost any practical analysis of microdata, microdata as a singular cross or longitudinal sample or within (static) microsimulation, is to achieve representative results. In this study a consistent solution of the microdata adjustment problem - that is to achieve representative results by re-weighting microdata to fit aggregate control data - is presented based on the Minimum Information Loss (MIL) principle. Based on information theory this principle satisfies the desired positivity constraint on the weighting factors to be computed. For the consistent solution which simultaneously adjusts hierarchical microdata (e.g. household and personal information), a fast numerical solution by a specific modified Newton-Raphson (MN) procedure with a global exponential approximation is proposed. Practical experiences for large microdata sets in a pension reform analysis with e.g. more than 60.000 households and 240 restrictions simultaneously to be achieved within the Sfb 3 microsimulation model show that this MN procedure was able to rather largely reduce the computional expenses by 75%. The available efficient PC-computer program ADJUST is also succesfully applied in a described microsimulation analyses of the recent 1990 German tax reform investigating the impacts on market and non-market labour supply within the formal and informal economy, and in a recent firm microsimulation analysion explaining factors of successful firms in the German engineering industry.

Keywords: Microdata Adjustment; Microanalyses; Microsimulation; Minimum Information Loss; Modified Newton- Raphson Algorithm; PC program package ADJUST (search for similar items in EconPapers)
JEL-codes: C80 C81 (search for similar items in EconPapers)
Pages: 43 pages
Date: 1994-07
References: Add references at CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.leuphana.de/fileadmin/user_upload/Forsc ... /files/DP_10_neu.pdf First version, 1994 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ffb/files/DP_10_neu.pdf [301 Moved Permanently]--> https://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ffb/files/DP_10_neu.pdf [303 See Other]--> https://www.leuphana.de/fileadmin/user_upload/forschungseinrichtungen/ffb/files/dp_10_neu.pdf)

Related works:
Working Paper: Microdata Adjustment by the Minimum Information Loss Principle (1994)
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:leu:wpaper:10

Access Statistics for this paper

More papers in FFB-Discussionpaper from Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Merz ( this e-mail address is bad, please contact ).