This paper is about the discrepancies in reported bilateral statistical data ("mirror data"). For example the trade from country A to country B is not reported the same in the two countries. The discrepancies are used to estimate the accuracy of the reporters. The estimated accuracies are to be used to compute optimal combinations of mirror data.
Two models of the discrepancies are presented: (a) unbiased reporting with inaccurate reporters having a large variance, and (b) biased reporting with inaccurate reporters having a large bias (either positive or negative). Estimation methods are least squares regression and maximum likelihood.
A numerical illustration is given, using data of the international trade in services. It is shown how to judge the two models empirically.
Research has been continued after the publication. See www.cpb.nl/eng/pub/cpbreeksen/memorandum/179
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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Memoranda with number
179.
Find related papers by JEL classification: C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data
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