Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2006:5: On the evaluation of the cost efficiency of nonresponse rate reduction efforts - some general considerations

Sara Tångdahl
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Sara Tångdahl: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Department of Business, Economics, Statistics and Informatics, SE - 701 82 ÖREBRO, Sweden

Abstract: Virtually every survey today suffers from nonresponse to some extent. To counter this, survey administrators and researchers have a host of methods at their disposal, many of which are both expensive and time consuming. Reduction efforts, aiming at reducing the nonresponse rate, are an important part of the data collection process, but commonly also a substantial part of the available survey budget.

We propose that the effciency of the reduction efforts be evaluated in relation to the costs. In this paper we point in the direction of an evaluation procedure, using a measure of cost effciency, that can be used in an "ideal" situation, where all relevant quantities are known. It can not be applied directly in practice, but will serve as a point of reference when practically feasible approaches are developed.

Keywords: resource allocation; cost efficiency; evaluation; nonresponse error; data collection

JEL-codes: C13; C14

31 pages, September 27, 2006

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