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Micro-level estimation of welfare

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  • Elbers, Chris
  • Lanjouw, Jean O.
  • Lanjouw, Peter

Abstract

The authors construct and derive the properties of estimators of welfare that take advantage of the detailed information about living standards available in small household surveys and the comprehensive coverage of a census or large sample. By combining the strengths of each, the estimators can be used at a remarkably disaggregated level. They have a clear interpretation, are mutually comparable, and can be assessed for reliability using standard statistical theory. Using data from Ecuador, the authors obtain estimates of welfare measures, some of which are quite reliable for populations as small as 15,000 households--a"town."They provide simple illustrations of their use. Such estimates open up the possibility of 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.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2911.

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Date of creation: 31 Oct 2002
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Handle: RePEc:wbk:wbrwps:2911

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Keywords: Statistical&Mathematical Sciences; Economic Theory&Research; Environmental Economics&Policies; Scientific Research&Science Parks; Public Health Promotion; Scientific Research&Science Parks; Science Education; Statistical&Mathematical Sciences; Economic Theory&Research; VN-Acb Mis -- IFC-00535908;

References

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  1. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
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  13. Andrew Chesher & Christian Schluter, 2002. "Welfare Measurement and Measurement Error," Review of Economic Studies, Oxford University Press, vol. 69(2), pages 357-378.
  14. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, World Bank Group, vol. 10(3), pages 565-91, September.
  15. Guido W. Imbens & Judith K. Hellerstein, 1996. "Imposing Moment Restrictions from Auxiliary Data by Weighting," NBER Technical Working Papers 0202, National Bureau of Economic Research, Inc.
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  21. Ravallion, Martin, 1998. "Does aggregation hide the harmful effects of inequality on growth?," Economics Letters, Elsevier, Elsevier, vol. 61(1), pages 73-77, October.
  22. Harold Alderman & Miriam Babita & Gabriel Demombynes & Nthabiseng Makhatha & Berk �zler, 2002. "How Low Can You Go? Combining Census and Survey Data for Mapping Poverty in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 11(2), pages 169-200, June.
  23. Elbers, Chris & Lanjouw, Peter, 2001. "Intersectoral Transfer, Growth, and Inequality in Rural Ecuador," World Development, Elsevier, Elsevier, vol. 29(3), pages 481-496, March.
  24. Chris Elbers & Jean Lanjouw, 2000. "Welfare in Village and Towns: Micro-Measurement of Poverty and Inequality," Tinbergen Institute Discussion Papers 00-029/2, Tinbergen Institute.
  25. Demombynes, Gabriel & Elbers, Chris & Lanjouw, Jenny & Lanjouw, Peter & Mistiaen, Johan & Ozler, Berk, 2002. "Producing an Improved Geographic Profile of Poverty: Methodology and Evidence from Three Developing Countries," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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