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

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  • Halliday, Timothy J.

    ()
    (University of Hawaii at Manoa)

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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Bibliographic Info

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:
Publication status: published in: Oxford Bulletin of Economics and Statistics, 2010, 72 (2), 246-262
Handle: RePEc:iza:izadps:dp3896

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Keywords: semi-parametric bounds; measurement error; migration; economies of scale;

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References

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  1. Guido Imbens & Charles F. Manski, 2003. "Confidence intervals for partially identified parameters," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP09/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Deaton, A. & Paxson, C., 1997. "Economies of Scale, Household Size, and the Demand for Food," Papers, Princeton, Woodrow Wilson School - Development Studies 178, Princeton, Woodrow Wilson School - Development Studies.
  3. J. Gibson & S. Rozelle, 2002. "How Elastic is Calorie Demand? Parametric, Nonparametric, and Semiparametric Results for Urban Papua New Guinea," Journal of Development Studies, Taylor & Francis Journals, vol. 38(6), pages 23-46.
  4. Trevon D. Logan, 2011. "Economies Of Scale In The Household: Puzzles And Patterns From The American Past," Economic Inquiry, Western Economic Association International, vol. 49(4), pages 1008-1028, October.
  5. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 21(1), pages 141-168, Winter.
  6. Angus Deaton & Christina Paxson, 2003. "Engel's What? A Response to Gan and Vernon," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 111(6), pages 1378-1381, December.
  7. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(433), pages 1415-34, November.
  8. John Gibson & Bonggeun Kim, 2007. "Measurement Error in Recall Surveys and the Relationship between Household Size and Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(2), pages 473-489.
  9. 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, University of Chicago Press, vol. 111(6), pages 1361-1377, December.
  10. Gibson, John, 2002. " Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 341-59, September.
  11. Hu, Yingyao, 2006. "Bounding parameters in a linear regression model with a mismeasured regressor using additional information," Journal of Econometrics, Elsevier, Elsevier, vol. 133(1), pages 51-70, July.
  12. Gibson, John, 2001. "Measuring chronic poverty without a panel," Journal of Development Economics, Elsevier, Elsevier, vol. 65(2), pages 243-266, August.
  13. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(4), pages 720-44, August.
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Cited by:
  1. Gibson, John & Kim, Bonggeun, 2013. "How reliable are household expenditures as a proxy for permanent income? Implications for the income–nutrition relationship," Economics Letters, Elsevier, Elsevier, vol. 118(1), pages 23-25.

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