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The Effects of Bracketing in Wealth Estimation

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Author Info
Harish Chand
Li Gan

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Abstract

The use of bracketing in wealth surveys is sometimes criticized on the grounds that it will encourage respondents to substitute rough guesses for careful thought. In such a manner, the use of bracketing will "crowd out" more specific answers, creating the illusion of a reduction in nonresponse. This paper examines the patterns of wealth response in the first two waves of the Health and Retirement Study. On average, people do not appear to transition to bracketing. New tests of the breakeven level of crowding-out are suggested. Based on the explanatory power of the brackets, the degree of crowding-out which would be necessary to make the use of bracketing counterproductive appears to be much higher than plausible. Copyright 2003 by the International Association for Research in Income and Wealth.

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Publisher Info
Article provided by Blackwell Publishing in its journal The Review of Income and Wealth.

Volume (Year): 49 (2003)
Issue (Month): 2 (06)
Pages: 273-287
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Handle: RePEc:bla:revinw:v:49:y:2003:i:2:p:273-287

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  1. Li Gan & Guan Gong & Michael Hurd & Daniel McFadden, 2004. "Subjective Mortality Risk and Bequests," NBER Working Papers 10789, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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