To Misreport or Not to Report? The Measurement of Household Financial Wealth

32 Pages Posted: 2 Oct 2012

Date Written: July 26, 2012

Abstract

The objective of the paper is to adjust for the bias due to unit non-response and measurement error in survey estimates of total household financial wealth. Sample surveys are a useful source of information on household wealth. Yet, survey estimates are affected by non-sampling errors. In particular, in the case of household wealth, unit non-response and measurement error can severely bias the estimates. Using the Italian Survey on Household Income and Wealth (SHIW), we exploit the available auxiliary information in order to assess the magnitude of this bias. We find evidence that for this kind of survey, non-sampling errors are a major issue, possibly more serious than sampling errors. Moreover, in the case of SHIW the potential bias due to measurement error seems to outweigh that induced by non-response.

Keywords: unit non-response, measurement error, auxiliary information, subsampling, imputation

JEL Classification: C2, C42, D31

Suggested Citation

Neri, Andrea and Ranalli, M. Giovanna, To Misreport or Not to Report? The Measurement of Household Financial Wealth (July 26, 2012). Bank of Italy Temi di Discussione (Working Paper) No. 870. Available at SSRN: https://ssrn.com/abstract=2154922 or http://dx.doi.org/10.2139/ssrn.2154922

Andrea Neri (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

M. Giovanna Ranalli

University of Perugia ( email )

Via Pascoli 22
Perugia
Italy

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