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Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index

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  • Hendrik Wolff
  • Howard Chong
  • Maximilian Auffhammer

Abstract

We measure and examine data error in health, education and income statistics used to construct the Human Development Index. We identify three sources of data error which are due to (i) data updating, (ii) formula revisions and (iii) thresholds to classify a country’s development status. We propose a simple statistical framework to calculate country specific measures of data uncertainty and investigate how data error biases rank assignments. We find that up to 34% of countries are misclassified and, by replicating prior studies, we show that key estimated parameters vary by up to 100% due to data error.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16572.

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Date of creation: Dec 2010
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Publication status: published as Hendrik Wolff & Howard Chong & Maximilian Auffhammer, 2011. "Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index," Economic Journal, Royal Economic Society, vol. 121(553), pages 843-870, 06.
Handle: RePEc:nbr:nberwo:16572

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  1. MORENO-TERNERO, Juan D. & ROEMER, John E., 2005. "Impartiality, priority, and solidarity in the theory of justice," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2005077, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Angel de la Fuente & Rafael Doménech, 2006. "Human Capital in Growth Regressions: How Much Difference Does Data Quality Make?," Journal of the European Economic Association, MIT Press, MIT Press, vol. 4(1), pages 1-36, 03.
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Cited by:
  1. Sevinc Rende & Murat Donduran, 2013. "Neighborhoods in Development: Human Development Index and Self-organizing Maps," Social Indicators Research, Springer, Springer, vol. 110(2), pages 721-734, January.
  2. Jorge Casas Novas & António Sousa & Maria do Céu Alves, 2012. "On the Relations Between Management Accounting Systems and Intellectual Capital. Evidence for Portuguese Companies," CEFAGE-UE Working Papers 2012_13, University of Evora, CEFAGE-UE (Portugal).
  3. M.ª Maurícia Rosado & Carlos Marques & Rui Fragoso, 2012. "Environmental Evaluation and Benchmarking of Traditional Mediterranean Crop Farming System of Dryland Agriculture in the Alentejo Region of Portugal," CEFAGE-UE Working Papers 2012_14, University of Evora, CEFAGE-UE (Portugal).
  4. Alfredo M. Pereira & Jorge M. Andraz, 2013. "On The Economic Effects Of Public Infrastructure Investment: A Survey Of The International Evidence," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, Chung-Ang Unviersity, Department of Economics, vol. 38(4), pages 1-37, December.
  5. Paulo R. Silva & Elisabete G.S. Félix, 2012. "Challenges of the Information Economy: Asymmetry of Information in the Information Society," CEFAGE-UE Working Papers 2012_15, University of Evora, CEFAGE-UE (Portugal).
  6. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," Journal of Economic Inequality, Springer, Springer, vol. 9(2), pages 249-288, June.
  7. Jorge Andraz & Nélia Norte, 2012. "Structural Breaks and Volatility of Gross Domestic Product: Evidence for Portugal," CEFAGE-UE Working Papers 2012_09, University of Evora, CEFAGE-UE (Portugal).
  8. Leo Dobes, 2012. "Adaptation to Climate Change: Formulating Policy under Uncertainty," CCEP Working Papers, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University 1201, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  9. Rui Fragoso & Vladimir Bushenkov & Carlos Marques, 2012. "Integrated Water Management Using Feasible Goals Method and Interactive Decision Maps: The Case of Odivelas Irrigation," CEFAGE-UE Working Papers 2012_07, University of Evora, CEFAGE-UE (Portugal).
  10. Soumodip Sarkar, 2012. "Message in a bottle: process innovations in the cork stopper fightback," CEFAGE-UE Working Papers 2012_12, University of Evora, CEFAGE-UE (Portugal).
  11. Paulo Ferreira & Andreia Dionísio, 2012. "An application of General Maximum Entropy to Utility," CEFAGE-UE Working Papers 2012_18, University of Evora, CEFAGE-UE (Portugal).
  12. Ravallion, Martin, 2010. "Troubling tradeoffs in the Human Development Index," Policy Research Working Paper Series 5484, The World Bank.
  13. Luisa Montuschi, 2013. "Progreso social, crecimiento y bienestar," CEMA Working Papers: Serie Documentos de Trabajo. 533, Universidad del CEMA.
  14. Rita Silva & Alexandra Ferreira Lopes, 2012. "A Regional Human Development Index for Portugal," CEFAGE-UE Working Papers 2012_05, University of Evora, CEFAGE-UE (Portugal).

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