Anchoring Effects in the HRS: Experimental and Nonexperimental Evidence
AbstractThe Health and Retirement Study (HRS) and a number of other major household surveys use unfolding brackets to reduce item nonresponse. However, the initial entry point into a bracketing sequence is likely to act as an anchor or point of reference to the respondent: The distribution of responses among those bracketed would be influenced by the entry point. For example, when the initial entry point is high the distribution will be shifted to the right one to believe that holdings of the particular asset are greater than they truly are. This paper has two goals. The first is to analyze some experimental data on housing value from HRS wave 3 for anchoring effects. The second is to compare the distributions of assets in HRS waves 1 and 2 for evidence about any anchoring effects that may have been caused by changes in the entry points between the waves. Both the experimental data on housing values and the nonexperimental data from HRS waves 1 and 2 on assets show anchoring effects. The conclusion is that to estimate accurately wealth change in panel data sets, we need a method of correcting for anchoring effects such as random entry into the bracketing sequence.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0219.
Date of creation: Feb 1998
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Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
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- Hilary W. Hoynes & Michael D. Hurd & Harish Chand, 1998. "8. Household Wealth of the Elderly under Alternative Imputation Procedures," NBER Chapters, in: Inquiries in the Economics of Aging, pages 229-257 National Bureau of Economic Research, Inc.
- Little, Roderick J A, 1988. "Missing-Data Adjustments in Large Surveys," Journal of Business & Economic Statistics, American Statistical Association, vol. 6(3), pages 287-96, July.
- Hendrik Jürges, 2007. "Does ill health affect savings intentions? Evidence from SHARE," MEA discussion paper series 07139, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
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