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Annals of Economic and Social Measurement, Volume 3, number 2

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Effects of Compensation in Consumer Expenditure Studies This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Annals of Economic and Social Measurement, Volume 3, number 2 Volume Author/Editor: Sanford V. Berg, editor Volume Publisher: NBER Volume URL: Publication Date: April 1974 Chapter Title: Effects of Compensation in Consumer Expenditure Studies Chapter Author: Robert Ferber, Seymore Sudman Chapter URL: Chapter pages in book: (p. 21 - 34) Annals of hcono,nu and Social itleaxurenu'ni. 3 2, 974 EFFECTS OF COMPENSATJON IN CONSUMER EXPENDITURE STUDIES u ROBERT FERBER AND SEYMOUR SUDMAN Studies of the effects of offering compensatiOn to respondents on consumer t'xpetidiiure surreys hare focused on response rates and report ralidiy. This paper .sutntnarizes pre'uious research results and ident&ies the possible effects on one-time intertiews and on panel studies. Although little information exists on the effects of the amount and frequency of corn pensation, education and income !rels are knowit to be relerant factors. 1. INTROE)UCTION This paper attempts to summarize the effects of offering compensati011 to respondents on consumer expenditure surveys based on the results of a number of observational and experimental studies of this question undertaken by the University of Illinois and other institutions. It addresses itself to the evaluation of two effects on such surveys--cooperation and report validity. Cooperation we define here as equivalent to the response rate, that is, the proportion of sample households contacted that grant the desired interview(s). Another aspect of cooperation. inducing those being interviewed to provide more complete or more accurate information, is subsumed tinder our second major heading. report validity. It is defined as the expenditures (in units or amounts, as the case may he) reported by the coope

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