The authors are grateful to comments from Ole Rummel, an anonymous referee and the editor, and seminar audiences at the Universities of Canterbury and Otago, the Labour Econometrics Workshop at the University of New South Wales and the International Conference on Measurement Error at Aston University. Financial support from Marsden Fund grant UOW0504 is gratefully acknowledged.
Non-Classical Measurement Error in Long-Term Retrospective Recall Surveys*
Article first published online: 18 JUL 2010
© Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2010
Oxford Bulletin of Economics and Statistics
Volume 72, Issue 5, pages 687–695, October 2010
How to Cite
Gibson, J. and Kim, B. (2010), Non-Classical Measurement Error in Long-Term Retrospective Recall Surveys. Oxford Bulletin of Economics and Statistics, 72: 687–695. doi: 10.1111/j.1468-0084.2010.00599.x
- Issue published online: 24 AUG 2010
- Article first published online: 18 JUL 2010
- Final Manuscript Received: February 2010
Applied microeconomic researchers are beginning to use long-term retrospective survey data in settings where conventional longitudinal survey data are unavailable. However, inaccurate long-term recall could induce non-classical measurement error, for which conventional statistical corrections are less effective. In this article, we use the unique Panel Study of Income Dynamics Validation Study to assess the accuracy of long-term retrospective recall data. We find underreporting of transitory variation which creates a non-classical measurement error problem.