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An Empirical Investigation of Biased Survey Data and an Attempted Cure

Author

Listed:
  • James E. Prieger

    (Department of Economics, University of California Davis)

Abstract

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.

Suggested Citation

  • James E. Prieger, 2004. "An Empirical Investigation of Biased Survey Data and an Attempted Cure," Working Papers 145, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:145
    as

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    File URL: https://repec.dss.ucdavis.edu/files/G4mE43Uw9WtV6DkGVhb4irK3/04-4.pdf
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    References listed on IDEAS

    as
    1. Hahn Robert W. & Prieger James E, 2007. "The Impact of Driver Cell Phone Use on Accidents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-39, January.
    2. Oyer, Paul, 2004. "Recall bias among displaced workers," Economics Letters, Elsevier, vol. 82(3), pages 397-402, 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. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Hennessy, Hugh & Tol, Richard S.J., 2011. "The impact of tax reform on new car purchases in Ireland," Energy Policy, Elsevier, vol. 39(11), pages 7059-7067.

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    More about this item

    Keywords

    Orbit; response bias; travel demand; semiparametric estimation; censoring; ordered choice data.;
    All these keywords.

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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