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An Empirical Investigation of Biased Survey Data and an Attempted Cure

  • James E. Prieger

    (Department of Economics, University of California Davis)

In this paper I investigate response bias in survey data on annual driving mileage and evaluate the performance of a proposed remedy, Orbit. Individuals systematically exaggerate their deviation from the sample average, and using the self-reported data leads to misleading estimates of the income elasticity of travel mileage. I extend the Orbit procedure, which is designed to correct for reporting bias, to allow misreporting at the lower censoring point. Orbit fails to detect the nature of the bias and distorts the income elasticity estimate even further. The message for practitioners using biased data is therefore a cautionary one.

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File URL: http://wp.econ.ucdavis.edu/04-4.pdf
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Paper provided by University of California, Davis, Department of Economics in its series Working Papers with number 44.

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Length: 20
Date of creation: 05 Aug 2004
Date of revision:
Handle: RePEc:cda:wpaper:04-4
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Web page: http://www.econ.ucdavis.edu
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  1. James E. Prieger & Robert W. Hahn, 2005. "The Impact of Driver Cell Phone Use on Accidents," Working Papers 520, University of California, Davis, Department of Economics.
  2. Goldberg, Pinelopi Koujianou, 1998. "The Effects of the Corporate Average Fuel Efficiency Standards in the US," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 1-33, March.
  3. Klein, Roger & Sherman, Robert, 1997. "Estimating new product demand from biased survey data," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 53-76.
  4. Hsiao, Cheng & Sun, Bao-Hong, 1998. "Modeling survey response bias - with an analysis of the demand for an advanced electronic device," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 15-39, November.
  5. Roger W. Klein & Robert P. Sherman, 2002. "Shift Restrictions and Semiparametric Estimation in Ordered Response Models," Econometrica, Econometric Society, vol. 70(2), pages 663-691, March.
  6. Oyer, Paul, 2004. "Recall bias among displaced workers," Economics Letters, Elsevier, vol. 82(3), pages 397-402, March.
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