Mismeasured Household Size and Its Implications for the Identification of Economies of Scale: On-Line Appendix

In this note, we correct an error from Halliday (2010) in which we explored the degree to which household size is measured with errors. After our correction, we find that an upper bound on the variance of these measurement errors increases by a factor of four. In fact, our calculations suggest that these errors could be as high as 20% of the total variation in household size. However, ∗E-mail: [email protected]. Address: 2424 Maile Way; Saunders Hall 533; Honolulu, HI 96822. Tele: (808) 956-8615. All errors are my own. 1 this dramatic increase is still not enough to resolve the puzzle posed in Deaton and Paxson (1998). JEL Classification: J12, C14