A Study of Response Errors in Expenditures Data from Household Interviews

Abstract In the collection of consumer expenditures data through household interviews, a major source of error arises from respondents' failure to recall expenditures, or to recall exactly when the expenditures were made. In an experimental study conducted by the U. S. Bureau of the Census, the measurement of these two types of response errors in the reporting of alterations and repairs expenditures in household interviews was a major objective. It was found that lengthening the recall period from one month to three months led to respondents reporting substantially fewer small jobs, but almost the same number of large jobs. In addition, net forward telescoping of expenditures was found, that is, a significantly larger portion of expenditures was moved into a more recent time period than in the opposite direction. The study also provided information on another effect of lengthening the period for which the respondent is asked to report expenditures. By considering recall for the most recent month when the respondent is asked for his expenditures over a longer period of time, the effect of the length of the reporting period can be separated from the effect associated with memory decay. A substantial loss of jobs associated with lengthening the total reporting period from one to six months was found in the reporting of expenditures for the most recent month.