Mismeasured Household Size and Its Implications for the Identification of Economies of Scale

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Mismeasured Household Size and Its Implications for the Identification of Economies of Scale

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Timothy Halliday () (Department of Economics, University of Hawaii at Manoa, John A. Burns School of Medicine, University of Hawaii at Manoa)

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Timothy J. Halliday

Abstract

We consider the possibility that household demographic variables are measured with error. Such errors will arise because income and consumption surveys measure the household's structure at a point-in-time, whereas the demographic composition of the household is constantly evolving over the survey period. We construct and estimate sharp bounds which suggest that the degree of these measurement errors is nontrivial. We also provide evidence that these errors may have important ramifications for recent work on the identification of economies of scale within households.

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Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200709.

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Length: 34 pages
Date of creation: 22 Mar 2007
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Handle: RePEc:hai:wpaper:200709

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Paper
- Halliday, Timothy, 2008. "Mismeasured Household Size and Its Implications for the Identification of Economies of Scale," IZA Discussion Papers 3896, Institute for the Study of Labor (IZA). [Downloadable!]

Find related papers by JEL classification:
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-03-31 (All new papers)

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