CIRJE-F-658 "Non-Classical Measurement Error in Long-Term Retrospective Recall Surveys"
Author Name Gibson, John and Bonggeun Kim
Date September 2009
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Applied microeconomic researchers are beginning to use long-term retrospective survey data in settings where conventional longitudinal survey data are unavailable. However, inaccurate long-term recall could induce non-classical measurement error, for which conventional statistical corrections are less effective. In this paper, we use the unique Panel Study of Income Dynamics Validation Study to assess the accuracy of long-term retrospective recall data. We find underreporting of transitory variation which creates a non-classical measurement error problem.