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Design effects in survey-based measures of household consumption

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  • Winter, Joachim

    (Mannheim Research Institute for the Economics of Aging (MEA))

Abstract

An important issue in designing survey questions on household consumption is the level of aggregation of expenditure categories. In this paper, I present experimental evidence on biases that are related to the choice of expenditure categories. Comparing responses to a 'one shot' question with responses to a more disaggregated design that comprises 35 expenditure categories reveals significant underreporting in the one-shot question. The same holds true when responses to one of these still relatively broad categories (food and beverages) are compared with measures from a budget survey that is based on a very detailed expenditure diary. There is also some evidence that these biases affect subsequent substantive economic analysis such as the estimation of Engel curves.

Suggested Citation

  • Winter, Joachim, 0000. "Design effects in survey-based measures of household consumption," Sonderforschungsbereich 504 Publications 02-34, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:02-34
    Note: Financial support was provided by the European Union (TMR project
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    File URL: http://www.sfb504.uni-mannheim.de/publications/dp02-34.pdf
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    References listed on IDEAS

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    1. Martin Browning & Thomas F. Crossley & Guglielmo Weber, 2003. "Asking consumption questions in general purpose surveys," Economic Journal, Royal Economic Society, vol. 113(491), pages 540-567, November.
    2. Philipson, Tomas, 2001. "Data Markets, Missing Data, and Incentive Pay," Econometrica, Econometric Society, vol. 69(4), pages 1099-1111, July.
    3. Winter, Joachim, 0000. "Bracketing effects in categorized survey questions and the measurement of economic quantities," Sonderforschungsbereich 504 Publications 02-35, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
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    5. Jean Olson Lanjouw & Peter Lanjouw, 2001. "How to Compare Apples And Oranges: Poverty Measurement Based on Different Definitions of Consumption," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 25-42, March.
    6. Menno Pradhan, 2001. "Welfare Analysis with a Proxy Consumption Measure – Evidence from a Repeated Experiment in Indonesia," Tinbergen Institute Discussion Papers 01-092/2, Tinbergen Institute.
    7. Ziliak, James P., 1998. "Does the choice of consumption measure matter? An application to the permanent-income hypothesis," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 201-216, February.
    8. Skinner, Jonathan, 1987. "A superior measure of consumption from the panel study of income dynamics," Economics Letters, Elsevier, vol. 23(2), pages 213-216.
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    Cited by:

    1. Joachim Winter, 2004. "Response bias in survey-based measures of household consumption," Economics Bulletin, AccessEcon, vol. 3(9), pages 1-12.
    2. Erich Battistin & Mario Padula, 2016. "Survey instruments and the reports of consumption expenditures: evidence from the consumer expenditure surveys," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(2), pages 559-581, February.
    3. Erich Battistin, 2002. "Errors in Survey Reports of Consumption Expenditures," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C4-2, International Conferences on Panel Data.
    4. Roopali Goyanka & Charu C. Garg & Sheela Prasad, 2019. "Impoverishment Due to Out-of-pocket Health Expenditures: Measurement and Comparison Across Different Surveys in India," Indian Journal of Human Development, , vol. 13(2), pages 121-134, August.
    5. Toepoel, V. & Vis, C.M. & Das, J.W.M. & van Soest, A.H.O., 2006. "Design of Web Questionnaires : An Information Processing Perspective for the Effect of Response Categories," Other publications TiSEM bb20f0d3-5f5d-46b3-92f4-2, Tilburg University, School of Economics and Management.

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    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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