Modeling Discrete Choice with Response Error: Food Stamp Participation

Abstract Validation of Food Stamp program participation by Marquis and Moore revealed net bias of 13% in mean estimates of participation in the 1984 Survey of Income and Program Participation. We extend the analysis, incorporating demographic and economic covariates in models for underreporting and overreporting. We use the resulting models of response error to refine estimates of participation models using pseudo-maximum likelihood estimation methods. We find that the probability of underreporting rises with increased family income. Estimates of the participation model indicate the presence of substantial bias in income- and asset-related parameters compared to values obtained without incorporating response error.

[1]  O. Morgenstern,et al.  On the Accuracy of Economic Observations. , 1950 .

[2]  R. Ferber,et al.  Validation of Consumer Financial Characteristics: Common Stock , 1969 .

[3]  Robert Ferber,et al.  VALIDATION OF A NATIONAL SURVEY OF CONSUMER FINANCIAL CHARACTERISTICS: SAVINGS ACCOUNTS , 1969 .

[4]  J. Heckman.  Sample selection bias as a specification error , 1979 .

[5]  J. Muellbauer,et al.  Economics and consumer behavior , 1980 .

[6]  M. Killingsworth.  Labor supply: List of tables and figures , 1983 .

[7]  C. Gouriéroux,et al.  PSEUDO MAXIMUM LIKELIHOOD METHODS: THEORY , 1984 .

[8]  Anne Lohrli.  Chapman and Hall , 1985 .

[9]  Greg J. Duncan,et al.  An Investigation of the Extent and Consequences of Measurement Error in Labor-Economic Survey Data , 1985, Journal of Labor Economics.

[10]  David M G Newberry.  The analysis of agricultural price reform , 1988 .

[11]  R. Moffitt,et al.  The effect of food stamps on labor supply: A bivariate selection model , 1988 .

[12]  The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right? , 1991 .

[13]  G. Kalton,et al.  The Future of the Survey of Income and Program Participation: Panel to Evaluate the Survey of Income and Program Participation , 1992 .

[14]  John A. Nelder,et al.  Likelihood, Quasi-likelihood and Pseudolikelihood: Some Comparisons , 1992 .

[15]  R. Blank,et al.  When Do Women Use Afdc & Food Stamps? The Dynamics of Eligibility vs. Participation , 1993 .

[16]  Constance F. Citro,et al.  Improving information for social policy decisions : the uses of microsimulation modeling , 1994 .

[17]  D. Ruppert,et al.  Measurement Error in Nonlinear Models , 1995 .

[18]  Constance F. Citro,et al.  Measuring poverty : a new approach , 1995 .