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Does survey recall error explain the Deaton–Paxson puzzle?

Matthew Brzozowski, Thomas Crossley and Joachim K. Winter
Journal article | Economics Letters

Using recall and diary food expenditure data from Canada, we compare estimates of the household size elasticity of per capita food expenditure. In contrast to Gibson (2002), we find negative elasticities in both recall and diary data. This in turn means we find evidence of the “Deaton–Paxson puzzle” in both diary and recall data. Recall error cannot be the sole explanation of the puzzle.