IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/60936.html
   My bibliography  Save this paper

A Quick and Dirty Estimate of Measurement Error in Household Survey Consumption Expenditures: Application to Indonesian Data

Author

Listed:
  • Pritchett, Lant
  • Sumarto, Sudarno
  • Suryahadi, Asep

Abstract

Measurement error is an enormous problem in empirical work. In some types of analysis, it is often ignored for various reasons. In some others, however, it cannot be ignored because it affects the results of analysis significantly. We use a simple procedure to estimate the extent of measurement error in household consumption expenditures data by comparing the coefficients obtained from OLS and instrumental variable regressions. We applied the procedure into school participation, durable goods expenditures, and clothing expenditures models using 10 different household survey data sets from Indonesia. The results indicate that measurement error accounts for less than 20 percent of total variance found in cross section household expenditures. In general, surveys which use detailed consumption questionnaire have smaller measurement error than those which use aggregated consumption questionnaire.

Suggested Citation

  • Pritchett, Lant & Sumarto, Sudarno & Suryahadi, Asep, 2000. "A Quick and Dirty Estimate of Measurement Error in Household Survey Consumption Expenditures: Application to Indonesian Data," MPRA Paper 60936, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60936
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/60936/1/MPRA_paper_60936.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    2. Hausman, J. A. & Newey, W. K. & Powell, J. L., 1995. "Nonlinear errors in variables Estimation of some Engel curves," Journal of Econometrics, Elsevier, vol. 65(1), pages 205-233, January.
    3. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
    4. Suryahadi, Asep*Sumarto, Sudarno*Suharso, Yusuf*, 2000. "The evolution of poverty during the crisis in Indonesia, 1996-99," Policy Research Working Paper Series 2435, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pritchett, Lant & Sumarto, Sudarno & Suryahadi, Asep, 2001. "Targeted Programs in an Economic Crisis: Empirical Findings from Indonesia’s Experience," MPRA Paper 58727, University Library of Munich, Germany.
    2. Yang, Lin, 2017. "The relationship between poverty and inequality: concepts and measurement," LSE Research Online Documents on Economics 103491, London School of Economics and Political Science, LSE Library.
    3. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
    4. Mohiburrahman Iqbal, 2013. "Vulnerability to expected poverty in Afghanistan," ASARC Working Papers 2013-14, The Australian National University, Australia South Asia Research Centre.
    5. Adama Bah, 2015. "Estimating Vulnerability to Poverty using Panel data: Evidence from Indonesia," CERDI Working papers halshs-00936199, HAL.
    6. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Измерение И Анализ Бедности [Poverty Measurement and Analysis]," MPRA Paper 10492, University Library of Munich, Germany.
    7. Katsushi Imai & Raghav Gaiha & Woojin Kang, 2011. "Vulnerability and poverty dynamics in Vietnam," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3603-3618.
    8. Evans Tindana Awuni & Daniele Malerba & Babette Never, 2023. "Understanding Vulnerability to Poverty, COVID-19’s Effects, and Implications for Social Protection: Insights from Ghana," Progress in Development Studies, , vol. 23(3), pages 246-274, July.
    9. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    10. Swati Dutta & Lakshmi Kumar, 2013. "Poverty Dynamics in Rural India: An Asset-Based Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(4), pages 475-506, November.
    11. Jean-Pierre Lachaud, 2002. "La dynamique de pauvreté au Burkina Faso revisitée : pauvreté durable et transitoire, et vulnérabilité," Documents de travail 77, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    12. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    13. Isabel Günther & Johannes K. Maier, 2014. "Poverty, Vulnerability, and Reference-Dependent Utility," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 155-181, March.
    14. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    15. Andy Sumner & Rich Mallett, 2011. "Snakes and Ladders, Buffers and Passports: Rethinking Poverty, Vulnerability and Wellbeing," Working Papers 83, International Policy Centre for Inclusive Growth.
    16. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Medición y análisis de la pobreza [Poverty Measurement and Analysis]," MPRA Paper 10491, University Library of Munich, Germany.
    17. Sumarto, Sudarno & Suryahadi, Asep, 2000. "Establishing Reliable Social Safety Net Programs: Lessons from the Indonesian Crisis Experience," MPRA Paper 60089, University Library of Munich, Germany.
    18. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2021. "Estimating poverty and vulnerability to monetary and non-monetary poverty: the case of Vietnam," Empirical Economics, Springer, vol. 61(6), pages 3125-3177, December.
    19. Sumarto, Sudarno & Suryahadi, Asep, 2001. "Social Redistribution and Social Safety Net: The case of Indonesia during the Asian Financial Crisis," MPRA Paper 60286, University Library of Munich, Germany.
    20. Adama BAH, 2013. "Estimating Vulnerability to Poverty using Panel data: Evidence from Indonesia," Working Papers 201325, CERDI.

    More about this item

    Keywords

    Measurement error; household expenditure; education; Indonesia.;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:60936. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.