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A framework for cut-off sampling in business survey design

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Author Info
Marco Bee ()
Roberto Benedetti ()
Giuseppe Espa ()

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Abstract

In sampling theory the large concentration of the population with respect to most surveyed variables constitutes a problem which is difficult to tackle by means of classical tools. One possible solution is given by cut-off sampling, which explicitly prescribes to discard part of the population; in particular, if the population is composed by firms or establishments, the method results in the exclusion of the “smallest” firms. Whereas this sampling scheme is common among practitioners, its theoretical foundations tend to be considered weak, because the inclusion probability of some units is equal to zero. In this paper we propose a framework to justify cut-off sampling and to determine the census and cut-off thresholds. We use an estimation model which assumes as known the weight of the discarded units with respect to each variable; we compute the variance of the estimator and its bias, which is caused by violations of the aforementioned hypothesis. We develop an algorithm which minimizes the MSE as a function of multivariate auxiliary information at the population level. Considering the combinatorial optimization nature of the model, we resort to the theory of stochastic relaxation: in particular, we use the simulated annealing algorithm.

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Publisher Info
Paper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 0709.

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Date of creation: 2007
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Handle: RePEc:trn:utwpde:0709

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Related research
Keywords: Cut-off sampling; skewed populations; model-based estimation; optimal stratification; simulated annealing;

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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