Welfare Measurement and Measurement Error

S-Tier
Journal: Review of Economic Studies
Year: 2002
Volume: 69
Issue: 2
Pages: 357-378

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The approximate effects of measurement error on a variety of measures of inequality and poverty are derived. They are shown to depend on the measurement error variance and functionals of the error-contaminated income distribution, but not on the form of the measurement error distribution, and to be accurate within a rich class of error-free income distributions and measurement error distributions. The functionals of the error-contaminated income distribution that approximate the measurement error induced distortions can be estimated. So it is possible to investigate the sensitivity of welfare measures to alternative amounts of measurement error and, when an estimate of the measurement error variance is available, to calculate corrected welfare measures. The methods are illustrated in an application using Indonesian household expenditure data. Copyright 2002, Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:69:y:2002:i:2:p:357-378
Journal Field
General
Author Count
2
Added to Database
2026-01-25