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Micro-level estimation of welfare, Volume 1
 
Author:Elbers, Chris; Lanjouw, Jean O.; Lanjouw, Peter; Date Stored:2002/11/11
Document Date:2002/10/31Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; VN-Acb Mis -- IFC-00535908; Scientific Research & Science Parks; Economic Theory & Research; Science Education; Statistical & Mathematical Sciences; Public Health PromotionLanguage:English
Report Number:WPS2911Sub Sectors:Other social services
Collection Title:Policy, Research working paper ; no. WPS 2911Volume No:1

Summary: 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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