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Longitudinal Economic Data At The Census Bureau: A New Database Yields Fresh Insight On Some Old Issues

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  • Robert H Mcguckin

Abstract

This paper has two goals. First, it illustrates the importance of panel data with examples taken from research in progress using the U.S. Census Bureau's Longitudinal Research Database ( LRD ). Although the LRD is not the result of a "true" longitudinal survey, it provides both balanced and unbalanced panel data sets for establishments, firms, and lines of business. The second goal is to integrate the results of recent research with the LRD and to draw conclusions about the importance of longitudinal microdata for econometric research and time series analysis. The advantages of panel data arise from both the micro and time series aspects of the observations. This also leads us to consider why panel data are necessary to understand and interpret the time series behavior of aggregate statistics produced in cross-section establishment surveys and censuses. We find that typical homogeneity assumptions are likely to be inappropriate in a wide variety of applications. In particular, the industry in which an establishment is located, the ownership of the establishment, and the existence of the establishment (births and deaths) are endogenous variables that cannot simply be taken as time invariant fixed effects in econometric modeling.

Suggested Citation

  • Robert H Mcguckin, 1990. "Longitudinal Economic Data At The Census Bureau: A New Database Yields Fresh Insight On Some Old Issues," Working Papers 90-1, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:90-1
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    File URL: https://www2.census.gov/ces/wp/1990/CES-WP-90-01.pdf
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    Cited by:

    1. List, John A. & McHone, W. Warren & Millimet, Daniel L., 2004. "Effects of environmental regulation on foreign and domestic plant births: is there a home field advantage?," Journal of Urban Economics, Elsevier, vol. 56(2), pages 303-326, September.
    2. John A. List & Daniel L. Millimet & Per G. Fredriksson & W. Warren McHone, 2003. "Effects of Environmental Regulations on Manufacturing Plant Births: Evidence from a Propensity Score Matching Estimator," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 944-952, November.
    3. John A. List & W. Warren McHone & Daniel L. Millimet, 2003. "Effects of air quality regulation on the destination choice of relocating plants," Oxford Economic Papers, Oxford University Press, vol. 55(4), pages 657-678, October.
    4. Robert H Mcguckin, 1992. "Analytic Use Of Economic Microdata; A Model For Researcher Access With Confidentiality Protection," Working Papers 92-8, Center for Economic Studies, U.S. Census Bureau.
    5. Joshua Drucker, 2015. "An Evaluation of Competitive Industrial Structure and Regional Manufacturing Employment Change," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1481-1496, September.
    6. Joshua Drucker, 2012. "The Spatial Extent of Agglomeration Economies: Evidence from Three U.S. Manufacturing Industries," Working Papers 12-01, Center for Economic Studies, U.S. Census Bureau.
    7. Eduardo Martins, 1993. "Construction Of Regional Input-Output Tables From Establishment-Level Microdata: Illinois, 1982," Working Papers 93-12, Center for Economic Studies, U.S. Census Bureau.
    8. James C. Davis & Brian P. Holly, 2006. "Regional Analysis Using Census Bureau Microdata at the Center for Economic Studies," International Regional Science Review, , vol. 29(3), pages 278-296, July.
    9. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.

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