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Misreporting in household income and expenditure: Evidence from the Chinese Household Income Project

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  • Li, Feng
  • Wang, Xintao

Abstract

This study provides new evidence on misreporting in household income and expenditure using recall and diary data from the 2013 Chinese Household Income Project. Using more accurate diary records as benchmarks, we observe substantial and systematic misreporting in income and expenditure from recall data. Two main patterns of misreporting are identified: mean reversion and correlation with subjective well-being (i.e., happier respondents tend to overreport).

Suggested Citation

  • Li, Feng & Wang, Xintao, 2024. "Misreporting in household income and expenditure: Evidence from the Chinese Household Income Project," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001095
    DOI: 10.1016/j.econlet.2024.111626
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    References listed on IDEAS

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    More about this item

    Keywords

    Misreporting; Income; Expenditure; Mean version; Subjective well-being;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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