WIDER Working Paper No. 2013/053 Advancing small area estimation
نویسندگان
چکیده
The poverty mapping methodology for estimating welfare rankings from small areas has proven to be useful in guiding allocation of government funds, regional planning, and general policy formulation. Nevertheless, poverty mapping also suffers from a series of by now well recognized shortcomings. We apply an approach based on first order dominance (FOD) to small area estimation. Five advantages to the FOD approach are highlighted. First, it can serve as a complement to, substitute for, and/or extension of the poverty mapping methodology. Second, it directly uses census data with a minimum of assumptions imposed. Third, the methodology is straightforward to implement and the concepts are intuitive. Fourth, the FOD approach is multi-dimensional allowing for a broader conception of poverty. Finally, FOD indicators can be chosen that relate directly to public expenditure priorities...
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