Small Area Estimates of Poverty in Region III

Authors

Caesar B. Cororaton, Virginia Polytechnic Institute and State UniversityFollow
Arlene B. Inocencio, De La Salle University, Manila Philippines
Alellie B. Sobreviñas, De La Salle University, Manila Philippines
Emmanuel DC. Barnedo, University of the Philippines

JEL Classification System

C18, C83, I32

Abstract

Official estimates of the Philippine Statistical Authority (PSA) poverty incidence prior to 2018 are reliable up to the regional level as these are consistent with the sampling domain of the data used for estimation. Below this level, the PSA poverty estimates are unreliable because of very large sampling errors. The high level of unreliability makes the estimates less useful for poverty policy targeting. This paper addresses this concern by combining the Family Income and Expenditure Survey (FIES) and the Census of Population and Housing (CPH) data and using an increasingly accepted technique for small area estimation (SAE). We estimate the poverty incidence for the Central Luzon provinces and show that our coefficients of variation are considerably smaller than those of PSA indicating higher reliability.

Recommended Citation

Cororaton, Caesar B.; Inocencio, Arlene B.; Sobreviñas, Alellie B.; and Barnedo, Emmanuel DC. (2022) "Small Area Estimates of Poverty in Region III," DLSU Business & Economics Review: Vol. 31: No. 2, Article 7.
DOI: https://doi.org/10.59588/2243-786X.1190
Available at: https://animorepository.dlsu.edu.ph/ber/vol31/iss2/7