Misreporting and econometric modelling of zeros in survey data on social bads: An application to cannabis consumption

Greene, W, Harris, M, Srivastava, P and Zhao, X 2017, 'Misreporting and econometric modelling of zeros in survey data on social bads: An application to cannabis consumption', Health Economics, vol. 27, no. 2, pp. 372-389.


Document type: Journal Article
Collection: Journal Articles

Title Misreporting and econometric modelling of zeros in survey data on social bads: An application to cannabis consumption
Author(s) Greene, W
Harris, M
Srivastava, P
Zhao, X
Year 2017
Journal name Health Economics
Volume number 27
Issue number 2
Start page 372
End page 389
Total pages 18
Publisher John Wiley and Sons
Abstract When modelling "social bads," such as illegal drug consumption, researchers are often faced with a dependent variable characterised by a large number of zero observations. Building on the recent literature on hurdle and double-hurdle models, we propose a double-inflated modelling framework, where the zero observations are allowed to come from the following: nonparticipants; participant misreporters (who have larger loss functions associated with a truthful response); and infrequent consumers. Due to our empirical application, the model is derived for the case of an ordered discrete-dependent variable. However, it is similarly possible to augment other such zero-inflated models (e.g., zero-inflated count models, and double-hurdle models for continuous variables). The model is then applied to a consumer choice problem of cannabis consumption. We estimate that 17% of the reported zeros in the cannabis survey are from individuals who misreport their participation, 11% from infrequent users, and only 72% from true nonparticipants.
Subject Econometric and Statistical Methods
Health Economics
Keyword(s) Cannabis consumption
Discrete data
Misclassification
Ordered outcomes
Zero-inflated responses
DOI - identifier 10.1002/hec.3553
Copyright notice © 2017 The Authors Health Economics Published by John Wiley & Sons Ltd
ISSN 1057-9230
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