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If those who misreport their status simply choose another form of insurance, the bias in estimates of the uninsured may be small.
Other than age related differences, the largest difference in Table 5 indicates that respondents with at least some college are 10 percentage points less likely to misreport as uninsured than those with just a high school degree.
Specifically, we expect that younger, less educated, and male respondents will be more likely to misreport insurance status for members of their household.
9 percent less likely to misreport than high school graduates holding all else constant.
The other agent, however, would not let him free ride without receiving the side transfer (the other agent would also misreport his type without being paid the side transfer).
L], one of them may misreport his type in attempt to free ride on the other agent.
The positive externality between the different agents resulting from wage compression generates an incentive problem when both agents are efficient types--an efficient agent has an incentive to misreport his type to free ride on the other efficient agent.
With the possibility of side contracting, the agents would cooperatively misreport their types if their joint payoff would improve by doing so.
We have assumed that misclassification is "random" in the sense that those from a group who misreport their race/ethnicity are identical in terms of rates of use as those who report correctly.
The ppv for whites is also high because in spite of the fact that the white group is the destination for most misreports, the white group is very large, and the misreports are a small fraction of the total of reported whites.
Consequently, the census figures are understand because busineses that do not file tax returns are not included and because some small firms misreport on their tax returns.
However, recent studies have indicated as many as 79 percent of patients misreport their medication-ingestion habits during clinical trials, calling into question the basic factualness of such studies, which can cost hundreds of millions of dollars to conduct.