Policy Research Institute
Ministry of Finance
3-1-1 Kasumigaseki, Chiyoda-ku
Information about this author at RePEc
NBER Working Papers and Publications
|June 2015||Estimating the Impacts of Program Benefits: Using Instrumental Variables with Underreported and Imputed Data|
with Melvin Stephens, Jr.: w21248
Survey non-response has risen in recent years which has increased the share of imputed and underreported values found on commonly used datasets. While this trend has been well-documented for earnings, the growth in non-response to government transfers questions has received far less attention. We demonstrate analytically that the underreporting and imputation of transfer benefits can lead to program impact estimates that are substantially overstated when using instrumental variables methods to correct for endogeneity and/or measurement error in benefit amounts. We document the importance of failing to account for these issues using two empirical examples.
|September 2010||The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits|
with Melvin Stephens, Jr.: w16342
Japanese public pension benefits, which were distributed quarterly through February 1990 and every other month since then, induce substantial but predictable income fluctuations. The relative magnitude of the payments combined with the delay between payments yields a stronger test of the Life-Cycle/Permanent Income Hypothesis than in prior studies. Applying two identification strategies to monthly household panel data, we find that consumption significantly responds to quarterly benefit receipt. Additional analysis suggests that our findings cannot be explained by either liquidity constraints or precautionary savings motives.
Published: Melvin Stephens & Takashi Unayama, 2011. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 86-118, October. citation courtesy of