Small Area Estimation Of Poverty In The Philippines

Type Thesis or Dissertation - Thesis
Title Small Area Estimation Of Poverty In The Philippines
Author(s)
Publication (Day/Month/Year) 2016
URL http://www.xeniaeditrice.it/SAE2.pdf
Abstract
The objective of this essay is to utilize a model of small area estimation in the Philippines. Because of direct estimates are subject to be unreliable, some of the model in practice have been proposed, in particular the EBLUP model. The variables utilized are the following: head count ratio, income gap, poverty gap, severity of poverty, average annual income and expenditure, and food threshold. EBLUP estimates will be computed for each of these indicators with their relative MSE. After the analysis has been taken place, the EBLUP estimates are very close to the direct one. The reason could rely on larger sample size utilized on each region, even though it is not calculated in this analysis. Gamma coefficients are smaller than unity so that the EBLUP estimates is showing a good model. However, the MSE gain is very small, only some regions in particular can be excluded but their interpretation change in which indicator is utilized. Only the Food threshold had some adjustment using the EBLUP model, meaning that the covariates used on the model have a strong relationship to this indicator. To obtain much gain in the MSE, the EBLUP model works much better if the sub-domains are extended to provincial and municipal level. However, it could not be implemented in this analysis as some information are not available.

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