Small area estimation of poverty statistics in the Philippines
2007
Albacea, Z.V.J., Philippines Univ. Los Banos, College, Laguna (Philippines). Inst. of Statistics
Poverty is a major concern of most countries if not all and efforts are exerted to eradicate or at least lessen it. Solving poverty problems require proper targeting as well as monitoring. Both targeting and monitoring need reliable statistics generated regularly for a domain of study as small as possible. In the Philippines, the official poverty statistics are reported at the national and regional level every three years, which coincide with conduct of the nationwide survey, the Family Income and Expenditure Survey (FIES), the official source of the income and expenditure data of the Philippines. Official poverty statistics at the provincial level are usually reported with caveat that the statistics might not be reliable due to high coefficients of variation. Because of this, the sub-national official poverty statistics are always questioned. Alternatively, the official methodology for estimating poverty statistics can be improved through the use of indirect estimation techniques like the small area estimation techniques. This paper was able to cite evidences that the small area estimation techniques like the synthetic, composite, regression-synthetic, empirical best linear unbiased prediction (EBLUP) and Elbers, Lanjouw and Lanjouw (ELL) methods of estimation can be used to estimate official poverty statistics. More so, the techniques were shown to generate more reliable set of estimates compared to estimates directly obtained from the nationwide survey. Hence, this paper justifies the use of small area estimation (SAE) techniques as part of the official methodology of estimating official poverty statistics.
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