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Latent class analyisis for reliable measure of inflation expectation in the indian public

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  • Sunil Kumar

Abstract

The main aim of this paper is to inspect the properties of survey based on households inflation expectations, conducted by Reserve Bank of India. It is theorized that the respondents answers are exaggerated by extreme response bias. Latent class analysis has been hailed as a promising technique for studying measurement errors in surveys, because the model produces estimates of the error rates associated with a given question of the questionnaire. I have identified a model with optimum performance and hence categorize the objective as well as reliable classifiers or otherwise.

Suggested Citation

  • Sunil Kumar, 2016. "Latent class analyisis for reliable measure of inflation expectation in the indian public," Papers 1603.01397, arXiv.org.
    • Handle: RePEc:arx:papers:1603.01397
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    File URL: http://arxiv.org/pdf/1603.01397
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    References listed on IDEAS

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    1. Rolf Scheufele, 2011. "Are Qualitative Inflation Expectations Useful to Predict Inflation?," OECD Journal: Journal of Business Cycle Measurement and Analysis, OECD Publishing, Centre for International Research on Economic Tendency Surveys, vol. 2011(1), pages 29-53.
    2. Ang, Andrew & Bekaert, Geert & Wei, Min, 2007. "Do macro variables, asset markets, or surveys forecast inflation better?," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1163-1212, May.
    3. Paul P. Biemer & Christopher Wiesen, 2002. "Measurement error evaluation of self‐reported drug use: a latent class analysis of the US National Household Survey on Drug Abuse," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 97-119, February.
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    Cited by:

    1. Sunil Kumar & Apurba Vishal Dabgotra, 2021. "A latent class analysis on the usage of mobile phones among management students," Statistics in Transition New Series, Polish Statistical Association, vol. 22(1), pages 89-114, March.
    2. Kumar Sunil & Dabgotra Apurba Vishal, 2021. "A latent class analysis on the usage of mobile phones among management students," Statistics in Transition New Series, Statistics Poland, vol. 22(1), pages 89-114, March.

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