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In econometrics and statistics, a top-coded data observation is one for which data points whose values are above an upper bound are censored.
Survey data are often topcoded before release to the public to preserve the anonymity of respondents. For example, if a survey answer reported a respondent with self-identified wealth of $79 billion, it would not be anonymous because people would know there is a good chance the respondent was Bill Gates. Top-coding may be also applied to prevent possibly-erroneous outliers from being published.
Bottom-coding is analogous, e.g. if amounts below zero are reported as zero. Top-coding occurs for data recorded in groups, e.g. if age ranges are reported in these groups: 0-20, 21-50, 50-99, 100-and-up. Here we only know how many people have ages above 100, not their distribution. Producers of survey data sometimes release the average of the censored amounts to help users impute unbiased estimates of the top group.
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