Kibrom A. Abay
International Food Policy Research Institute (IFPR
Institutional Affiliation: International Food Policy Research Institute
NBER Working Papers and Publications
|July 2019||Measurement Error Mechanisms Matter: Agricultural Intensification with Farmer Misperceptions and Misreporting|
with Leah Bevis, Christopher B. Barrett: w26066
The mechanism(s) that generate measurement error matter to inference. Survey measurement error is typically thought to represent simple misreporting correctable through improved measurement. But errors might also or alternatively reflect respondent misperceptions that materially affect the respondent decisions under study. We show analytically that these alternate data generating processes imply different appropriate regression specifications and have distinct effects on the bias in parameter estimates. We introduce a simple empirical technique to generate unbiased estimates under more general conditions and to apportion measurement error between misreporting and misperceptions in measurement error when one has both self-reported and objectively-measured observations of the same explanator...