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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Halliday, Timothy () (University of Hawaii at Manoa)

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Timothy J. Halliday

Abstract

We consider the possibility that demographic variables are measured with errors which arise because household surveys measure demographic structures at a point-in-time, whereas household composition evolves throughout the survey period. We construct and estimate sharp bounds on household size and find that the degree of these measurement errors is non-trivial. However, while these errors have the potential to resolve the Deaton-Paxson paradox, they fail to do so.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3896.

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Length: 36 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3896

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Paper
- Timothy Halliday, 2007. "Mismeasured Household Size and Its Implications for the Identification of Economies of Scale," Working Papers 200709, University of Hawaii at Manoa, Department of Economics. [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-2009-01-03 (All new papers)
NEP-MIG-2009-01-03 (Economics of Human Migration)

References listed on IDEAS
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Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
Other versions:
- Banerjee, Abhijit & Duflo, Esther, 2006. "The Economic Lives of the Poor," CEPR Discussion Papers 5968, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Other versions:
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Lanjouw, Peter & Ravallion, Martin & DEC, 1994. "Poverty and household size," Policy Research Working Paper Series 1332, The World Bank. [Downloadable!]
Other versions:
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Trevon D. Logan, 2008. "Economies of Scale in the Household: Puzzles and Patterns from the American Past," NBER Working Papers 13869, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Other versions:
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John Gibson & Bonggeun Kim, 2007. "Measurement Error in Recall Surveys and the Relationship between Household Size and Food Demand," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 89(2), pages 473-489, 05. [Downloadable!] (restricted)
Li Gan & Victoria Vernon, 2003. "Testing the Barten Model of Economies of Scale in Household Consumption: Toward Resolving a Paradox of Deaton and Paxson," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1361-1377, December. [Downloadable!] (restricted)
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Other versions:
- Gibson, John & Rozelle, Scott, 2000. "How Elastic Is Calorie Demand? Parametric, Nonparametric, And Semiparametric Results For Urban Papua New Guinea," Working Papers 11961, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]

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