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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.

Suggested Citation

  • Ravallion, Martin, 2000. "What can we learn about country performance from conditional comparisons across countries?," Policy Research Working Paper Series 2342, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2342
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    References listed on IDEAS

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    Cited by:

    1. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Metas y costos del desarrollo [Development Targets and Costs]," MPRA Paper 10493, 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. "Задачи Развития И Затраты [Development targets and costs]," MPRA Paper 10495, 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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