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The Challenges of Combining Two Databases in Small-Area Estimation: An Example Using Spatial Microsimulation of Child Poverty

Author

Listed:
  • Yogi Vidyattama
  • Riyana Miranti
  • Justine McNamara

    (National Centre for Social and Economic Modelling (NATSEM), University of Canberra, ACT 2601, Australia)

  • Robert Tanton
  • Ann Harding

Abstract

Spatial microsimulation techniques have become an increasingly popular way of fulfilling the need for generating small-area data estimates. However, the technique also poses numerous methodological challenges, including the utilisation of two different databases simultaneously to produce estimates of population characteristics at the local level. An important but neglected question is whether different distributions of key variables within these two databases may affect the validity of the spatial estimation results. This study uses the significant policy issue of small-area estimates of child poverty rates in Australia to examine this question. The different income distributions for families with children in the two databases and the consequent effect on child-poverty estimates are assessed, while the apparent validity of these synthetic small-area poverty rates is gauged.

Suggested Citation

  • Yogi Vidyattama & Riyana Miranti & Justine McNamara & Robert Tanton & Ann Harding, 2013. "The Challenges of Combining Two Databases in Small-Area Estimation: An Example Using Spatial Microsimulation of Child Poverty," Environment and Planning A, , vol. 45(2), pages 344-361, February.
    • Handle: RePEc:sae:envira:v:45:y:2013:i:2:p:344-361
    DOI: 10.1068/a4511
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    References listed on IDEAS

    as
    1. Robert Tanton & Paul Williamson & Ann Harding, 2014. "Comparing Two Methods of Reweighting a Survey File to Small Area Data," International Journal of Microsimulation, International Microsimulation Association, vol. 7(1), pages 76-99.
    2. Robert Tanton & Yogi Vidyattama & Justine McNamara & Quoc Ngu Vu & Ann Harding, 2009. "Old, Single and Poor: Using Microsimulation and Microdata to Analyse Poverty and the Impact of Policy Change among Older Australians," Economic Papers, The Economic Society of Australia, vol. 28(2), pages 102-120, June.
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    4. Yogi Vidyattama & Rebecca Cassells & Ann Harding & Justine Mcnamara, 2013. "Rich or Poor in Retirement? A Small Area Analysis of Australian Private Superannuation Savings in 2006 Using Spatial Microsimulation," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 722-739, May.
    5. Sharyn Lymer & Laurie Brown & Ann Harding & Mandy Yap, 2009. "Predicting the need for aged care services at the small area level: the CAREMOD spatial microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 2(2), pages 27-42.
    6. ., 2007. "Introduction and overview," Chapters, in: International Economic Law and the Digital Divide, chapter 1, Edward Elgar Publishing.
    7. Azizur Rahman & Ann Harding & Robert Tanton & Shuangzhe Liu, 2010. "Methodological Issues in Spatial Microsimulation Modelling for Small Area Estimation," International Journal of Microsimulation, International Microsimulation Association, vol. 3(2), pages 3-22.
    8. David Johnson & Rosanna Scutella, 2003. "Understanding and Improving Data Quality Relating to Low-Income Households," Melbourne Institute Working Paper Series wp2003n18, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Tomoki Nakaya & A. Fotheringham & Kazumasa Hanaoka & Graham Clarke & Dimitris Ballas & Keiji Yano, 2007. "Combining microsimulation and spatial interaction models for retail location analysis," Journal of Geographical Systems, Springer, vol. 9(4), pages 345-369, December.
    10. Bruce Bradbury, 1996. "Are the Low Income Self-employed Poor?," Discussion Papers 0073, University of New South Wales, Social Policy Research Centre.
    11. Ann Harding & Quoc Ngu Vu & Robert Tanton & Yogi Vidyattama, 2009. "Improving Work Incentives and Incomes for Parents: The National and Geographic Impact of Liberalising the Family Tax Benefit Income Test," The Economic Record, The Economic Society of Australia, vol. 85(s1), pages 48-58, September.
    12. Peter Saunders & Bruce Bradbury, 2006. "Monitoring Trends in Poverty and Income Distribution: Data, Methodology and Measurement," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 341-364, September.
    13. Robert Tanton & Yogi Vidyattama & Binod Nepal & Justine McNamara, 2011. "Small area estimation using a reweighting algorithm," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(4), pages 931-951, October.
    14. Dimitris Ballas & Graham Clarke & John Dewhurst, 2006. "Modelling the Socio-economic Impacts of Major Job Loss or Gain at the Local Level: a Spatial Microsimulation Framework," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(1), pages 127-146.
    Full references (including those not matched with items on IDEAS)

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