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Keeping it Together: Tracking Firms on New Zealand’s Longitudinal Business Database

  • Richard Fabling

    ()

    (Reserve Bank of New Zealand)

Having good longitudinal identifiers is important in empirical microeconomics, since researchers often need to be able to observe the same unit over time to make causal inferences. However, firm identifiers in Statistics New Zealand’s Longitudinal Business Database can be “broken” by, among other things, changes in the legal status of the firm. This paper proposes a simple method for repairing broken firm identifiers, making use of existing plant migration data. We show that making such repairs materially reduces the apparent rate of business entry and exit, and allows real economic phenomena, such as small business incorporation, to be observed for the first time.

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File URL: http://motu-www.motu.org.nz/wpapers/11_01.pdf
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Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 11_01.

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Length: 13 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:mtu:wpaper:11_01
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  1. Richard Fabling & Arthur Grimes, 2009. "The "suite" smell of success: complementary personnel practices and firm performance," Reserve Bank of New Zealand Discussion Paper Series DP2009/13, Reserve Bank of New Zealand.
  2. Richard Fabling, 2009. "A Rough Guide to New Zealand's Longitudinal Business Database," Global COE Hi-Stat Discussion Paper Series gd09-103, Institute of Economic Research, Hitotsubashi University.
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