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Reconciling household surveys and national accounts data using a cross entropy estimation method:

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  • Robilliard, Anne-Sophie
  • Robinson, Sherman

Abstract

This paper presents an approach to reconciling household surveys and national accounts data that starts from the assumption that the macro data represent control totals to which the household data must be reconciled. The economic data gathered in the survey are also assumed to be accurate, or have been adjusted to be accurate. Given these assumptions, the problem is how to use the additional information provided by the national accounts data to re-estimate the household weights used in the survey so that the survey results are consistent with the aggregate data. The estimation approach represents an efficient “information processing rule” using an estimation criterion based on an entropy measure of information. The survey household weights are treated as a prior. New weights are estimated that are close to the prior using a cross-entropy metric and that are also consistent with the additional information. This approach is implemented to reconcile LSMS survey data and macro data for Madagascar. The results indicate that the approach is powerful and flexible, supporting the efficient use of information from a variety of sources to reconcile data at different levels of aggregation in a consistent framework.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series TMD discussion papers with number 50.

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Date of creation: 1999
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Handle: RePEc:fpr:tmddps:50

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Keywords: National income Accounting.; Household surveys.; Madagascar.;

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  1. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 19(8), pages 1299-1324, November.
  2. van Tongeren, Jan W, 1986. "Development of an Algorithm for the Compilation of National Accounts and Related Systems of Statistics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 32(1), pages 25-47, March.
  3. Pyatt, Graham, 1991. "SAMs, the SNA and National Accounting Capabilities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(2), pages 177-98, June.
  4. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
  5. Zellner, A., 1988. "Optimal Information-Processing And Bayes' Theorem," Papers, Southern California - Department of Economics m8803, Southern California - Department of Economics.
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