Kurt Gerrard T. See
234 Wellington Street
Ottawa K1A 069
Institutional Affiliation: Bank of Canada
NBER Working Papers and Publications
|July 2019||What Do Survey Data Tell Us about US Businesses?|
with , , : w26063
This paper examines the reliability of survey data on business incomes, valuations, and rates of return, which are key inputs for studies of wealth inequality and entrepreneurial choice. We compare survey responses of business owners with available data from administrative tax records, brokered private business sales, and publicly traded company filings and document problems due to nonrepresentative samples and measurement errors across several surveys, subsamples, and years. We find that the discrepancies are economically relevant for the statistics of interest. We investigate reasons for these discrepancies and propose corrections for future survey designs.