Rent Imputation for Welfare Measurement : A Review of Methodologies and Empirical Findings

Rent Imputation for Welfare Measurement : A Review of Methodologies and Empirical Findings

As well acknowledged in the literature, housing is often the dominant consumption good for most households. As such, it should be included in a comprehensive welfare aggregate to measure people's living standards accurately. However, assigning...

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Bibliographic Details
Main Authors:	Balcazar, Carlos Felipe, Ceriani, Lidia, Olivieri, Sergio, Ranzani, Marco
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ABSOLUTE POVERTY ABSOLUTE POVERTY LINE AGRICULTURE APARTMENTS BASKET OF GOODS BENCHMARK BONDS CASH FLOW CHANGES IN POVERTY CITIES CONSUMER PRICE INDEX CONSUMER PRICE INDICES CONSUMER PRICES CONSUMPTION AGGREGATE CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION INCREASES CONSUMPTION MEASURE COST OF HOUSING CRIME DESCRIPTION DEVELOPMENT POLICY DISPOSABLE INCOME DISTRICTS DURABLE GOODS DWELLING DWELLING COSTS DWELLINGS ECONOMETRIC MODELS ECONOMETRICS ECONOMIC COOPERATION ECONOMIC SECTORS ECONOMIC STATISTICS ECONOMIC THEORY ELASTICITY EQUALITY EXCHANGE RATES FAMILY MEMBERS FINANCIAL CRISIS FOOD CONSUMPTION FOOD POVERTY FOOD POVERTY LINE FOOD PRICES FUNCTIONAL FORMS GDP GDP PER CAPITA GROSS VALUE HOME OWNER HOME OWNERS HOME OWNERSHIP HOMEOWNERS HOMES HOSPITALS HOUSE PRICES HOUSEHOLD BUDGET HOUSEHOLD COMPOSITION HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS HOUSES HOUSING HOUSING COSTS HOUSING ECONOMICS HOUSING MARKET HOUSING MARKETS IMPACT ON POVERTY INCOME INCOME DISTRIBUTION INCOME INEQUALITY INEQUALITY INEQUALITY MEASURES INFLATION INFLATION RATE INHABITANTS INSURANCE INTERNATIONAL POVERTY COMPARISONS LIVING CONDITION LIVING CONDITIONS LIVING STANDARDS MEASUREMENT OF POVERTY MONETARY POLICY MORTGAGES NEIGHBORHOOD NEIGHBORHOODS NOMINAL INTEREST RATE OCCUPATION OPPORTUNITY COST OPPORTUNITY COSTS PER CAPITA CONSUMPTION POLITICAL ECONOMY POOR POOR INDIVIDUALS POPULATION GROUPS POVERTY ESTIMATES POVERTY INDICES POVERTY LEVEL POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY RATE POVERTY STATUS POVERTY THRESHOLD PRICE INDEXES PRICE LEVELS PROPERTY TAXES PROPERTY VALUES PURCHASING POWER QUALITY OF LIFE REAL INTEREST RATE REDUCTION IN POVERTY REGIONAL SCIENCE RENTAL SERVICES RENTALS RENTING RENTS RURAL RURAL AREAS SAVINGS SETTLEMENT SHELTER SPATIAL DEPENDENCE SPATIAL DISTRIBUTION SPATIAL PATTERNS TAXATION TOTAL POVERTY TOTAL POVERTY LINE TRAFFIC URBAN AREAS UTILITY FUNCTION WEALTH WELFARE DISTRIBUTION WELFARE MEASURE WELFARE MEASURES
Online Access:	http://documents.worldbank.org/curated/en/2014/11/20373375/rent-imputation-welfare-measurement-review-methodologies-empirical-findings http://hdl.handle.net/10986/20613

Description
Summary:	As well acknowledged in the literature, housing is often the dominant consumption good for most households. As such, it should be included in a comprehensive welfare aggregate to measure people's living standards accurately. However, assigning a value to the flow of the dwelling for homeowners and nonmarket tenants is problematic. Over the last decades several estimation techniques have been proposed and implemented by practitioners covering from very simple to sophisticated approaches. This paper provides an extensive review of different methods to impute rent, commonly used for welfare analysis. It also gives an overview of how this problem has been addressed by other economic domains, namely national accounts, price indices, purchasing power parities, and taxation. Finally, after setting up a theoretical framework, the paper summarizes the empirical findings about the distributional impact of including imputed rents in welfare aggregates.

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