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The Missing Transfers: Estimating Misreporting in Dyadic Data

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  • Margherita Comola
  • Marcel Fafchamps

Abstract

Many studies have used self-reported dyadic data without exploiting the pattern of discordant answers. In this article we propose a maximum likelihood estimator that deals with misreporting in a systematic way. We illustrate the methodology using dyadic data on interhousehold transfers from the village of Nyakatoke in Tanzania. We show that not taking reporting bias into account leads to serious underestimation of the total amount of transfers between villagers. We also provide suggestive evidence that reporting bias can affect inference about estimated coefficients. The method introduced here is applicable whenever the researcher has two discordant measurements of the same dependent variable.

Suggested Citation

  • Margherita Comola & Marcel Fafchamps, 2017. "The Missing Transfers: Estimating Misreporting in Dyadic Data," Economic Development and Cultural Change, University of Chicago Press, vol. 65(3), pages 549-582.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/690810
    DOI: 10.1086/690810
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    Cited by:

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    5. Yong Cai, 2022. "Linear Regression with Centrality Measures," Papers 2210.10024, arXiv.org.
    6. Grimm, Michael & Hartwig, Renate & Reitmann, Ann-Kristin & Bocoum, Fadima Yaya, 2021. "Inter-household transfers: An empirical investigation of the income-transfer relationship with novel data from Burkina Faso," World Development, Elsevier, vol. 144(C).
    7. Ethan Ligon & Laura Schechter, 2020. "Structural Experimentation to Distinguish between Models of Risk Sharing with Frictions in Rural Paraguay," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 1-50.
    8. Lina Zhang, 2020. "Spillovers of Program Benefits with Missing Network Links," Papers 2009.09614, arXiv.org, revised Apr 2023.
    9. Heath Henderson & Arnob Alam, 2022. "The structure of risk-sharing networks," Empirical Economics, Springer, vol. 62(2), pages 853-886, February.
    10. Comola, Margherita & Prina, Silvia, 2023. "The Interplay among Savings Accounts and Network-Based Financial Arrangements: Evidence from a Field Experiment," IZA Discussion Papers 16303, Institute of Labor Economics (IZA).
    11. Strupat, Christoph & Klohn, Florian, 2018. "Crowding out of solidarity? Public health insurance versus informal transfer networks in Ghana," World Development, Elsevier, vol. 104(C), pages 212-221.

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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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