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The Identification of Reporting Accuracies from Mirror Data

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  • Cate Arie ten

    (CPB Netherlands Bureau for Economic Policy Analysis, PO Box 80510, 2508 GM Den Haag, The Netherlands)

Abstract

Mirror data are observations of bilateral variables such as trade from one country to another, reported by both countries. The efficient estimation of a bilateral variable from its mirror data, for example when compiling consistent international trade statistics, requires information about the accuracy of the reporters. This can be obtained from the simultaneous estimation of the accuracy of multiple reporters, from all mirror data. This estimation requires an identifying restriction. For example, in one of the proposed models this restriction prevents the model to be indifferent between (a) all reporters reporting correctly and (b) all reporters over-reporting with the same percentage. Two models are presented. First, a model with country-specific mean reporting errors is discussed shortly. This model has been discussed elsewhere without a convincing solution of the identification problem. Such a solution is presented here, assuming symmetry. Second, a model is presented with country specific reporting error variances, in the form of a generalized linear model (GLM). This model supplies the weights for the traditional method of optimally combining inconsistent data: weighted with the reciprocal of their error variance. Here also a symmetrical identifying restriction is used. In this way, this paper paves the road for the production of harmonized statistics by international agencies. A small data set on international trade is used as an illustration.

Suggested Citation

  • Cate Arie ten, 2014. "The Identification of Reporting Accuracies from Mirror Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(1), pages 70-84, February.
    • Handle: RePEc:jns:jbstat:v:234:y:2014:i:1:p:70-84
    DOI: 10.1515/jbnst-2014-0106
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    References listed on IDEAS

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    1. Arie ten Cate, 2007. "Modelling the reporting discrepancies in bilateral data," CPB Memorandum 179.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Richard Stone & D. G. Champernowne & J. E. Meade, 1942. "The Precision of National Income Estimates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(2), pages 111-125.
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    5. Arie ten Cate, 2007. "Modelling the reporting discrepancies in bilateral data," CPB Memorandum 179, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Joop Beer & James Raymer & Rob Erf & Leo Wissen, 2010. "Overcoming the Problems of Inconsistent International Migration data: A New Method Applied to Flows in Europe [Surmonter les problèmes d’incohérences des données sur les migrations internationales:," European Journal of Population, Springer;European Association for Population Studies, vol. 26(4), pages 459-481, November.
    7. Gehlhar, Mark J., 1996. "Reconciling Bilateral Trade Data For Use In Gtap," Technical Papers 28714, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    9. Gehlhar, Mark, 1996. "Reconciling Bilateral Trade Data for Use in GTAP," GTAP Technical Papers 313, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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