All Title Author
Keywords Abstract


Assessing Consistency of Consumer Confidence Data using Dynamic Latent Class Analysis

Full-Text   Cite this paper   Add to My Lib

Abstract:

In many countries information on expectations collected through consumer confidence surveys are used in macroeconomic policy formulation. Unfortunately, before doing so, the consistency of responses is often not taken into account, leading to biases creeping in and affecting the reliability of the indices hence created. This paper describes how latent class analysis may be used to check the consistency of responses and ensure a parsimonious questionnaire. In particular, we examine how temporal changes may be incorporated into the model. Our methodology is illustrated using three rounds of Consumer Confidence Survey (CCS) conducted by Reserve Bank of India (RBI).

Full-Text

comments powered by Disqus