Combining Blanking and Noise Addition as a Data Disclosure Limitation Method

14 Pages Posted: 12 Sep 2006

See all articles by Anton Flossmann

Anton Flossmann

University of Konstanz - Department of Economics; Institute for the Study of Labor (IZA)

Sandra Nolte (Lechner)

Lancaster University Management School

Date Written: August 30, 2006

Abstract

Statistical disclosure limitation is widely used by data collecting institutions to provide safe individual data. In this paper, we propose to combine two separate disclosure limitation techniques blanking and addition of independent noise in order to protect the original data. The proposed approach yields a decrease in the probability of reidentifying/disclosing the individual information, and can be applied to linear as well as nonlinear regression models.

We show how to combine the blanking method and the measurement error method, and how to estimate the model by the combination of the Simulation-Extrapolation (SIMEX) approach proposed by Cook and Stefanski (1994) and the Inverse Probability Weighting (IPW) approach going back to Horvitz and Thompson (1952). We produce Monte-Carlo evidence on how the reduction of data quality can be minimized by this masking procedure.

Keywords: disclosure limitation technique, error-in-variables, blanking, SIMEX, IPW

JEL Classification: C21, J24, J31

Suggested Citation

Flossmann, Anton and Nolte (Lechner), Sandra, Combining Blanking and Noise Addition as a Data Disclosure Limitation Method (August 30, 2006). Available at SSRN: https://ssrn.com/abstract=929429 or http://dx.doi.org/10.2139/ssrn.929429

Anton Flossmann

University of Konstanz - Department of Economics ( email )

Universitätsstr. 10
Box: D 124
78457 Konstanz
Germany

HOME PAGE: http://econometrics.wiwi.uni-konstanz.de/staff/flossmann.htm

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Sandra Nolte (Lechner) (Contact Author)

Lancaster University Management School ( email )

Lancaster, Lancashire LA1 4YX
United Kingdom

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