Imputed Welfare Estimates in Regression Analysis

Posted: 29 Feb 2008

See all articles by Chris Elbers

Chris Elbers

Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute

n O. Lanjouw

affiliation not provided to SSRN

Peter F. Lanjouw

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2005

Abstract

We discuss the use of imputed data in regression analysis, in particular the use of highly disaggregated welfare indicators (from so-called `poverty maps`). We show that such indicators can be used both as explanatory variables on the right-hand side and as the phenomenon to explain on the left-hand side. We try out practical ways of adjusting standard errors of the regression coefficients to reflect the error introduced by using imputed, rather than actual, welfare indicators. These are illustrated by regression experiments based on data from Ecuador. For regressions with imputed variables on the left-hand side, we argue that essentially the same aggregate relationships would be found with either actual or imputed variables. We address the methodological question of how to interpret aggregate relationships found in such regressions.

Keywords: JEL classifications: O15, O18, C13, C21

Suggested Citation

Elbers, Chris and Lanjouw, n O. and Lanjouw, Peter F., Imputed Welfare Estimates in Regression Analysis (January 2005). Journal of Economic Geography, Vol. 5, Issue 1, pp. 101-118, 2005, Available at SSRN: https://ssrn.com/abstract=917693

Chris Elbers (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

N O. Lanjouw

affiliation not provided to SSRN

No Address Available

Peter F. Lanjouw

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-4529 (Phone)
202-522-1153 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/planjouw

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