Recall food consumption data, which is the basis of a great deal of empirical work, is believed to suffer from considerable measurement error. Diary records are believed to be very accurate. We study a unique data set that collects recall and diary data from the same households. Measurement errors in recall food consumption data appear to be substantial, and they do not have the properties of classical measurement error. We also find evidence that the diary measures are themselves imperfect. We consider the implications of our findings for modelling demand, measuring inequality, and estimating inter-temporal preference parameters. Keywords: expenditure, consumption, measurement error, survey data
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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number
W06/21.
Length: 41 pp. Date of creation: Oct 2006 Date of revision: Handle: RePEc:ifs:ifsewp:06/21
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Orazio P. Attanasio & Hamish Low, 2004.
"Estimating Euler Equations,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 7(2), pages 405-435, April.
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