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Determination of the Threshold in Cutoff Sampling Using Response Burden with an Application to Intrastat

Author

Listed:
  • Polanec Sašo

    (School of Economics and Business, University of Ljubljana, Ljubljana, Slovenia.)

  • Smith Paul A.

    (Department of Social Statistics and Demography, University of Southampton, Southampton, UK.)

  • Bavdaž Mojca

    (School of Economics and Business, University of Ljubljana, Ljubljana, Slovenia.)

Abstract

Statistical offices frequently use cutoff sampling to determine which businesses in a population should be surveyed. Examples include business surveys about international trade, production, innovation, ICT usage and so on. Cutoff thresholds are typically set in terms of key variables of interest and aim to satisfy a minimum coverage ratio–the share of aggregate values of reporting units. In this article we propose a simple cost-benefit approach to determination of the sampling cutoff by taking into account the response burden. In line with existing practice, we use the coverage ratio as our measure of accuracy and provide either analytical or numerical solutions to cutoff determination. Using a business survey on response burden of reporting trade flows within the EU (Intrastat), we present an application that illustrates our approach to cutoff determination. An important practical implication is the possibility to set industry-contingent cutoffs.

Suggested Citation

  • Polanec Sašo & Smith Paul A. & Bavdaž Mojca, 2022. "Determination of the Threshold in Cutoff Sampling Using Response Burden with an Application to Intrastat," Journal of Official Statistics, Sciendo, vol. 38(4), pages 1205-1234, December.
    • Handle: RePEc:vrs:offsta:v:38:y:2022:i:4:p:1205-1234:n:14
    DOI: 10.2478/jos-2022-0051
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    References listed on IDEAS

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    Cited by:

    1. Santiago Bonilla & Sašo Polanec, 2024. "The impact of foreign demand shocks on organisational hierarchies," The World Economy, Wiley Blackwell, vol. 47(4), pages 1741-1767, April.

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