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The use of accuracy indicators to correct for survey measurement error

An accuracy indicator is an observed variable which is related to the size of measurement error. Basic and extended models are introduced to represent the properties of a binary accuracy indicator. Under specified assumptions, it is shown that an accuracy indicator can identify a measurement error model. An approach to estimating a distribution function is presented together with methodology for variance estimation. The approach is applied to data on earnings from the British Household Panel Survey, where the accuracy indicator is whether or not a payslip is observed. A validation study provides justification for the modelling assumptions.