This paper considers measurement error from a new perspective. In surveys, response
errors are often caused by the fact that respondents recall past events and quantities
imperfectly. We explore the consequences of recall errors for such key econometric is-
sues as the identification of marginal effects or economic restrictions in structural models.
Our identification approach is entirely nonparametric, using Matzkin-type nonseparable
models that nest a large class of potential structural models. We establish that measurement errors due to poor recall are generally likely to exhibit nonstandard behavior, in
particular be nonclassical and differential, and we provide means to deal with this situation. Moreover, our findings suggest that conventional wisdom about measurement errors
may be misleading in many economic applications. For instance, under certain conditions
left-hand side recall errors will be problematic even in the linear model, and quantiles
will be less robust than means. Finally, we apply the main concepts put forward in this
paper to real world data, and find evidence that underscores the importance of focusing
on individual response behavior