A Note on the Carlson-Parkin Method of Quantifying Qualitative Data

Abstract

Qualitative surveys enjoy huge popularity among business cycle analysts and research institutes since they provide fast information on the stance of the economy. However, in order to derive quantitative statements researchers have to rely on assumptions about the relation between quantitative and qualitative information. This paper introduces a micro data set that combines individual quantitative and qualitative information and presents first tests of common assumptions. It suggests a modification of the Carlson-Parkin (Carlson & Parkin 1975) method and a solution to the zero response problem.

Keywords: rational expectations, quantification, survey data

JEL Classification: C42, C82, E2, D10