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An Empirical Evaluation of Poverty Mapping Methodology: Explicitly Spatial versus Implicitly Spatial Approach

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  • Olivia, Susan
  • Gibson, John
  • Smith, Aaron D.
  • Rozelle, Scott
  • Deng, Xiangzheng

Abstract

Poverty maps provide information on the spatial distribution of welfare and can predict poverty levels for small geographic units like counties and townships. Typically regression methods are used to estimate coefficients from the detailed information in household surveys, which are then applied to the more extensive coverage of a census. One problem with standard regression techniques is that they do not take into account the ‗spatial dependencies‘ that often exist in the data. Ignoring spatial autocorrelation in the regression providing the coefficient estimates could lead to misleading predictions of poverty, and estimates of standard errors. Household survey data usually lack exact measures of location so it is not possible to fully account for this spatial autocorrelation. In this paper, we use data from Shaanxi, China with exact measures of distance between each household to explicitly model this spatial autocorrelation. We also investigate which set of augmenting variables (i) census means or (ii) environmental variables mainly from satellite imagery have the most impact in soaking up unwanted spatial autocorrelation.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 47651.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:47651

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Keywords: China; Poverty; Small Area Estimation; Survey Methods; Spatial Models;

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  1. Baulch, Bob & Minot, Nicholas, 2002. "Poverty mapping with aggregate census data," MTID discussion papers 49, International Food Policy Research Institute (IFPRI).
  2. Tara Bedi & Aline Coudouel & Kenneth Simler, 2007. "More Than a Pretty Picture : Using Poverty Maps to Design Better Policies and Interventions," World Bank Publications, The World Bank, number 6800, February.
  3. John Gibson & David McKenzie, 2007. "Using Global Positioning Systems in Household Surveys for Better Economics and Better Policy," World Bank Research Observer, World Bank Group, vol. 22(2), pages 217-241, September.
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