We construct and derive the properties of an estimator of welfare which takes advantage of the detailed nature of information about living standards available in small household surveys and the comprehensive coverage of a census. By combining the strengths of each, our estimator can be used at a disaggregated level. It has a clear interpretation; it can be expanded in a consistent way to any welfare measure;and can be assessed for reliability using standard statistical theory. Because unit record census data present some computational hurdles, we explore simulation and numerical integration approaches, as well as the use of distributional approxima-tions. For non-separable inequality measures we derive specific formulas to allow the use of `shortcut' computational methods. Using data from Ecuador we obtain estimates of welfare measures which are very reliable for populations of 5,000 house-holds, 'town's', and in many cases for those as small as 500. We provide simple illustrations of their use. In the longer run, such estimates open up the possibility of estimating and testing, at a more convincing intra-country level, the many recent models relating welfare distributions to growth and a variety of socioeconomic and political outcomes.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.