How Good a Map? Putting Small Area Estimation to the Test

The authors examine the performance of small area welfare estimation. The method combines census and survey data to produce spatially disaggregated poverty and inequality estimates. To test the method, they compare predicted welfare indicators for...

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Main Authors: Demombynes, Gabriel, Elbers, Chris, Lanjouw, Jean O., Lanjouw, Peter
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2007/03/7488024/good-map-putting-small-area-estimation-test
http://hdl.handle.net/10986/7040
id okr-10986-7040
recordtype oai_dc
spelling okr-10986-70402021-04-23T14:02:33Z How Good a Map? Putting Small Area Estimation to the Test Demombynes, Gabriel Elbers, Chris Lanjouw, Jean O. Lanjouw, Peter APPROACH CAPITA CONSUMPTION CAPITA EXPENDITURE CASE STUDY CENSUSES COMMUNITY LEVEL CONSUMPTION LEVEL CONSUMPTION MODEL CONSUMPTION SMOOTHING CORRELATIONS DEGREES OF FREEDOM DELTA METHOD DEVELOPING COUNTRIES DISTRICT-LEVEL DISTURBANCE TERM ECONOMIC GROWTH EDUCATION ESTIMATES OF POVERTY ESTIMATION OF POVERTY ESTIMATION PROCEDURE EXPERIMENTS EXPLANATORY VARIABLES FOLLOW UP SURVEYS GEOGRAPHIC PROFILE OF POVERTY HEADCOUNT RATE HEALTH HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEY DATA HOUSEHOLD WELFARE HOUSEHOLDS IDIOSYNCRATIC COMPONENT IDIOSYNCRATIC ERROR INCOME INCOME DATA INEQUALITY LEVEL ESTIMATION OF WELFARE LEVEL OF AGGREGATION NUMBER OF HOUSEHOLDS NUTRITION PARAMETER ESTIMATES PARAMETRIC PARAMETRIC APPROACH PARAMETRIC DISTRIBUTIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POOR COMMUNITIES POOR HOUSEHOLDS POPULATION CENSUS POPULATION SIZE POVERTY GAP POVERTY INDICES POVERTY LINE POVERTY MAPPING POVERTY MAPPING METHODOLOGY POVERTY MAPS POVERTY MEASURES POVERTY RATE PROGRESS REGRESSORS RELIABILITY RESEARCH WORKING PAPERS RESEARCHERS RURAL SIMULATION SIMULATION METHODS SIMULATION PROCEDURES SIMULATIONS SMALL AREA ESTIMATION SOCIAL SPENDING SPATIAL DIMENSIONS OF POVERTY STANDARD DEVIATION STANDARD ERROR STANDARD ERRORS TARGETING TECHNIQUES TIME SERIES ANALYSIS VARIANCE-COVARIANCE MATRIX WELFARE INDICATORS The authors examine the performance of small area welfare estimation. The method combines census and survey data to produce spatially disaggregated poverty and inequality estimates. To test the method, they compare predicted welfare indicators for a set of target populations with their true values. They construct target populations using actual data from a census of households in a set of rural Mexican communities. They examine estimates along three criteria: accuracy of confidence intervals, bias, and correlation with true values. The authors find that while point estimates are very stable, the precision of the estimates varies with alternative simulation methods. While the original approach of numerical gradient estimation yields standard errors that seem appropriate, some computationally less-intensive simulation procedures yield confidence intervals that are slightly too narrow. The precision of estimates is shown to diminish markedly if unobserved location effects at the village level are not well captured in underlying consumption models. With well specified models there is only slight evidence of bias, but the authors show that bias increases if underlying models fail to capture latent location effects. Correlations between estimated and true welfare at the local level are highest for mean expenditure and poverty measures and lower for inequality measures. 2012-06-04T19:29:50Z 2012-06-04T19:29:50Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7488024/good-map-putting-small-area-estimation-test http://hdl.handle.net/10986/7040 English Policy Research Working Paper; No. 4155 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic APPROACH
CAPITA CONSUMPTION
CAPITA EXPENDITURE
CASE STUDY
CENSUSES
COMMUNITY LEVEL
CONSUMPTION LEVEL
CONSUMPTION MODEL
CONSUMPTION SMOOTHING
CORRELATIONS
DEGREES OF FREEDOM
DELTA METHOD
DEVELOPING COUNTRIES
DISTRICT-LEVEL
DISTURBANCE TERM
ECONOMIC GROWTH
EDUCATION
ESTIMATES OF POVERTY
ESTIMATION OF POVERTY
ESTIMATION PROCEDURE
EXPERIMENTS
EXPLANATORY VARIABLES
FOLLOW UP SURVEYS
GEOGRAPHIC PROFILE OF POVERTY
HEADCOUNT RATE
HEALTH
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEY DATA
HOUSEHOLD WELFARE
HOUSEHOLDS
IDIOSYNCRATIC COMPONENT
IDIOSYNCRATIC ERROR
INCOME
INCOME DATA
INEQUALITY
LEVEL ESTIMATION OF WELFARE
LEVEL OF AGGREGATION
NUMBER OF HOUSEHOLDS
NUTRITION
PARAMETER ESTIMATES
PARAMETRIC
PARAMETRIC APPROACH
PARAMETRIC DISTRIBUTIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR COMMUNITIES
POOR HOUSEHOLDS
POPULATION CENSUS
POPULATION SIZE
POVERTY GAP
POVERTY INDICES
POVERTY LINE
POVERTY MAPPING
POVERTY MAPPING METHODOLOGY
POVERTY MAPS
POVERTY MEASURES
POVERTY RATE
PROGRESS
REGRESSORS
RELIABILITY
RESEARCH WORKING PAPERS
RESEARCHERS
RURAL
SIMULATION
SIMULATION METHODS
SIMULATION PROCEDURES
SIMULATIONS
SMALL AREA ESTIMATION
SOCIAL SPENDING
SPATIAL DIMENSIONS OF POVERTY
STANDARD DEVIATION
STANDARD ERROR
STANDARD ERRORS
TARGETING
TECHNIQUES
TIME SERIES ANALYSIS
VARIANCE-COVARIANCE MATRIX
WELFARE INDICATORS
spellingShingle APPROACH
CAPITA CONSUMPTION
CAPITA EXPENDITURE
CASE STUDY
CENSUSES
COMMUNITY LEVEL
CONSUMPTION LEVEL
CONSUMPTION MODEL
CONSUMPTION SMOOTHING
CORRELATIONS
DEGREES OF FREEDOM
DELTA METHOD
DEVELOPING COUNTRIES
DISTRICT-LEVEL
DISTURBANCE TERM
ECONOMIC GROWTH
EDUCATION
ESTIMATES OF POVERTY
ESTIMATION OF POVERTY
ESTIMATION PROCEDURE
EXPERIMENTS
EXPLANATORY VARIABLES
FOLLOW UP SURVEYS
GEOGRAPHIC PROFILE OF POVERTY
HEADCOUNT RATE
HEALTH
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEY DATA
HOUSEHOLD WELFARE
HOUSEHOLDS
IDIOSYNCRATIC COMPONENT
IDIOSYNCRATIC ERROR
INCOME
INCOME DATA
INEQUALITY
LEVEL ESTIMATION OF WELFARE
LEVEL OF AGGREGATION
NUMBER OF HOUSEHOLDS
NUTRITION
PARAMETER ESTIMATES
PARAMETRIC
PARAMETRIC APPROACH
PARAMETRIC DISTRIBUTIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR COMMUNITIES
POOR HOUSEHOLDS
POPULATION CENSUS
POPULATION SIZE
POVERTY GAP
POVERTY INDICES
POVERTY LINE
POVERTY MAPPING
POVERTY MAPPING METHODOLOGY
POVERTY MAPS
POVERTY MEASURES
POVERTY RATE
PROGRESS
REGRESSORS
RELIABILITY
RESEARCH WORKING PAPERS
RESEARCHERS
RURAL
SIMULATION
SIMULATION METHODS
SIMULATION PROCEDURES
SIMULATIONS
SMALL AREA ESTIMATION
SOCIAL SPENDING
SPATIAL DIMENSIONS OF POVERTY
STANDARD DEVIATION
STANDARD ERROR
STANDARD ERRORS
TARGETING
TECHNIQUES
TIME SERIES ANALYSIS
VARIANCE-COVARIANCE MATRIX
WELFARE INDICATORS
Demombynes, Gabriel
Elbers, Chris
Lanjouw, Jean O.
Lanjouw, Peter
How Good a Map? Putting Small Area Estimation to the Test
geographic_facet Latin America & Caribbean
Mexico
relation Policy Research Working Paper; No. 4155
description The authors examine the performance of small area welfare estimation. The method combines census and survey data to produce spatially disaggregated poverty and inequality estimates. To test the method, they compare predicted welfare indicators for a set of target populations with their true values. They construct target populations using actual data from a census of households in a set of rural Mexican communities. They examine estimates along three criteria: accuracy of confidence intervals, bias, and correlation with true values. The authors find that while point estimates are very stable, the precision of the estimates varies with alternative simulation methods. While the original approach of numerical gradient estimation yields standard errors that seem appropriate, some computationally less-intensive simulation procedures yield confidence intervals that are slightly too narrow. The precision of estimates is shown to diminish markedly if unobserved location effects at the village level are not well captured in underlying consumption models. With well specified models there is only slight evidence of bias, but the authors show that bias increases if underlying models fail to capture latent location effects. Correlations between estimated and true welfare at the local level are highest for mean expenditure and poverty measures and lower for inequality measures.
format Publications & Research :: Policy Research Working Paper
author Demombynes, Gabriel
Elbers, Chris
Lanjouw, Jean O.
Lanjouw, Peter
author_facet Demombynes, Gabriel
Elbers, Chris
Lanjouw, Jean O.
Lanjouw, Peter
author_sort Demombynes, Gabriel
title How Good a Map? Putting Small Area Estimation to the Test
title_short How Good a Map? Putting Small Area Estimation to the Test
title_full How Good a Map? Putting Small Area Estimation to the Test
title_fullStr How Good a Map? Putting Small Area Estimation to the Test
title_full_unstemmed How Good a Map? Putting Small Area Estimation to the Test
title_sort how good a map? putting small area estimation to the test
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/03/7488024/good-map-putting-small-area-estimation-test
http://hdl.handle.net/10986/7040
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