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Identifying and Evaluating Sample Selection Bias in Consumer Payment Surveys

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  • Marcin Hitczenko

Abstract

This paper develops a two-stage statistical analysis to identify and assess the effect of a sample selection bias associated with an individual’s household role. The methodology is applied to the 2012 Survey of Consumer Payment Choice. Survey responses to a series of questions about the respondent’s role in household finances are combined and adjusted for response error to estimate a latent variable that represents each individual’s share of household responsibility. The distribution of this variable among survey respondents suggests that the sampling procedure favors household members with higher levels of financial responsibility. We also find that the estimated household role relates to the number of noncash payments made. As a result, estimators that do not account for the selection bias overestimate population means for these payment instruments by around 10 percent. We discuss ways to account for this selection bias in future surveys.

Suggested Citation

  • Marcin Hitczenko, 2015. "Identifying and Evaluating Sample Selection Bias in Consumer Payment Surveys," Consumer Payments Research Data Reports 2015-07, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedadr:99532
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    References listed on IDEAS

    as
    1. Park, David K. & Gelman, Andrew & Bafumi, Joseph, 2004. "Bayesian Multilevel Estimation with Poststratification: State-Level Estimates from National Polls," Political Analysis, Cambridge University Press, vol. 12(4), pages 375-385.
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    Cited by:

    1. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2017. "The 2012 diary of consumer payment choice: technical appendix," Research Data Report 17-5, Federal Reserve Bank of Boston.
    2. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2017. "The 2015 Survey of Consumer Payment Choice: technical appendix," Research Data Report 17-4, Federal Reserve Bank of Boston.
    3. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2020. "The 2016 and 2017 Surveys of Consumer Payment Choice: Technical Appendix," Consumer Payments Research Data Reports 2018-4, Federal Reserve Bank of Atlanta.
    4. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2018. "The 2015 and 2016 diaries of consumer payment choice: technical appendix," Research Data Report 18-2, Federal Reserve Bank of Boston.
    5. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2016. "The 2014 Survey of Consumer Payment Choice: Technical Appendix," Consumer Payments Research Data Reports 2016-04, Federal Reserve Bank of Atlanta.
    6. Scott Schuh, 2017. "Measuring consumer expenditures with payment diaries," Working Papers 17-2, Federal Reserve Bank of Boston.

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    More about this item

    Keywords

    survey error; household economics; Dirichlet regression; Survey of Consumer Payment Choice;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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