Nonresponse in panel data: The impact on estimates of a life cycle consumption function

ThE Nijman, Marno Verbeek

Research output: Contribution to journalArticleAcademicpeer-review

109 Citations (Scopus)

Abstract

If missing observations in a panel data set are not missing at random, many widely applied estimators may be inconsistent. In this paper we examine empirically several ways to reveal the nature and severity of the selectivity problem due to nonresponse, as well as a number of methods to estimate the resulting models. Using a life cycle consumption function and data from the Expenditure Index Panel from the Netherlands, we discuss simple procedures that can be used to assess whether observations are missing at random, and we consider more complicated estimation procedures that can be used to obtain consistent or efficient estimates in case of selectivity of attrition bias. Finally, some attention is paid to the differences in identification, consistency, and efficiency between inferences from a single wave of the panel, a balanced sub-panel, and an unbalanced panel.
Original languageEnglish
Pages (from-to)243-257
Number of pages15
JournalJournal of Applied Econometrics
Volume7
Issue number3
DOIs
Publication statusPublished - 1992
Externally publishedYes

Fingerprint

Dive into the research topics of 'Nonresponse in panel data: The impact on estimates of a life cycle consumption function'. Together they form a unique fingerprint.

Cite this