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What can we learn about country performance from conditional comparisons across countries?

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  • Ravallion, Martin

Abstract

There have been many attempts to infer latent performance attributes of governments (or other institutions) from conditional comparisons that control for observed variables. Success in doing do could greatly improve government performance. The author critically reviews the econometric foundations of the methods used. He argues that latent heterogeneity remains a fundamental, but unresolved problem. Locating a benchmark for measuring performance, adds a further problem. Current methods do not yield a consistent estimate of even the mean latent performance attribute. An assessment of country performance by these methods could well be wildly wrong.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2342.

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Date of creation: 31 May 2000
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Handle: RePEc:wbk:wbrwps:2342

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Related research

Keywords: Environmental Economics&Policies; Services&Transfers to Poor; Public Health Promotion; Health Economics&Finance; Health Monitoring&Evaluation; Health Economics&Finance; Rural Poverty Reduction; Services&Transfers to Poor; Achieving Shared Growth; Safety Nets and Transfers;

References

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  1. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 66(5), pages 1017-1098, September.
  2. Alejandro Ramirez & Gustav Ranis & Frances Stewart, . "Economic Growth and Human Development -," QEH Working Papers, Queen Elizabeth House, University of Oxford qehwps18, Queen Elizabeth House, University of Oxford.
  3. Ravallion, Martin, 1997. "Good and bad growth: The human development reports," World Development, Elsevier, Elsevier, vol. 25(5), pages 631-638, May.
  4. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, Elsevier, vol. 41(2), pages 307-336, August.
  5. Bidani, Benu & Ravallion, Martin, 1995. "Decomposing social indicators using distributional data," Policy Research Working Paper Series, The World Bank 1487, The World Bank.
  6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
  7. Sen, Amartya, 1981. "Public Action and the Quality of Life in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 43(4), pages 287-319, November.
  8. Bhalla, Surjit S & Glewwe, Paul, 1986. "Growth and Equity in Developing Countries: A Reinterpretation of the Sri Lankan Experience," World Bank Economic Review, World Bank Group, World Bank Group, vol. 1(1), pages 35-63, September.
  9. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 7(1), pages 133-150, Winter.
  10. Gouyette, Claudine & Pestieau, Pierre, 1999. "Efficiency of the Welfare State," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 52(4), pages 537-53.
  11. Tracy, Joseph & Waldfogel, Joel, 1997. "The Best Business Schools: A Market-Based Approach," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 70(1), pages 1-31, January.
  12. Patrick Vanhoudt, 1997. "Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in OECD Countries?: Some Empirical Evidence," IMF Staff Papers, Palgrave Macmillan, vol. 44(3), pages 356-373, September.
  13. Aturupane, Harsha & Glewwe, Paul & Isenman, Paul, 1994. "Poverty, Human Development, and Growth: An Emerging Consensus?," American Economic Review, American Economic Association, American Economic Association, vol. 84(2), pages 244-49, May.
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Cited by:
  1. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Задачи Развития И Затраты
    [Development targets and costs]
    ," MPRA Paper 10495, University Library of Munich, Germany.
  2. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Cibles du développement et coûts
    [Development targets and costs]
    ," MPRA Paper 10494, University Library of Munich, Germany.
  3. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Metas y costos del desarrollo
    [Development Targets and Costs]
    ," MPRA Paper 10493, University Library of Munich, Germany.
  4. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Development Targets and Costs," MPRA Paper 12299, University Library of Munich, Germany.

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