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IZA Discussion Paper No. 3896
December 2008
Mismeasured Household Size and Its Implications for the Identification of Economies of Scale

published in: Oxford Bulletin of Economics and Statistics, 2010, 72 (2), 246-262

We consider the possibility that demographic variables are measured with errors which arise because household surveys measure demographic structures at a point-in-time, whereas household composition evolves throughout the survey period. We construct and estimate sharp bounds on household size and find that the degree of these measurement errors is non-trivial. However, while these errors have the potential to resolve the Deaton-Paxson paradox, they fail to do so.

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Mark Fallak
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Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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