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Assessing Consistency of Consumer Confidence Data using Dynamic Latent Class Analysis
- Publication Year :
- 2015
-
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).
- Subjects :
- Quantitative Finance - General Finance
Quantitative Finance - Statistical Finance
Subjects
Details
- Database :
- arXiv
- Publication Type :
- Report
- Accession number :
- edsarx.1509.01215
- Document Type :
- Working Paper