Statistical Challenges of Administrative and Transaction Data

Summary Administrative data are becoming increasingly important. They are typically the side effect of some operational exercise and are often seen as having significant advantages over alternative sources of data. Although it is true that such data have merits, statisticians should approach the analysis of such data with the same cautious and critical eye as they approach the analysis of data from any other source. The paper identifies some statistical challenges, with the aim of stimulating debate about and improving the analysis of administrative data, and encouraging methodology researchers to explore some of the important statistical problems which arise with such data.