What Do Survey Data Tell Us about US Businesses?
- (pp. 443-58)
Abstract
This paper examines the reliability of survey data on business incomes, valuations, and rates of return, which are key inputs for studies of wealth inequality and entrepreneurial choice. We compare survey responses of business owners with available data from administrative tax records, brokered private business sales, and publicly traded company filings and document problems due to nonrepresentative samples and measurement errors across several surveys, subsamples, and years. We find that the discrepancies are economically relevant for the statistics of interest. We investigate reasons for these discrepancies and propose corrections for future survey designs.Citation
Bhandari, Anmol, Serdar Birinci, Ellen R. McGrattan, and Kurt See. 2020. "What Do Survey Data Tell Us about US Businesses?" American Economic Review: Insights, 2 (4): 443-58. DOI: 10.1257/aeri.20190304Additional Materials
JEL Classification
- C82 Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
- C83 Survey Methods; Sampling Methods
- D22 Firm Behavior: Empirical Analysis