Yusuf, Arief Anshory (2006): On the re-assessment of inequality in Indonesia: household survey or national account?
Download (229kB) | Preview
This paper is motivated by the inconsistency between food and non-food ex-penditure estimated from household survey data (SUSENAS) and from nationalaccount (I-O table) and its connection on the issue of inequality in Indonesia.Since non-food expenditure tend to be under-estimated when compared withnational account data, it imply the under-representation of the rich in the cal-culation of inequality in Indonesia. This paper, then applies an approach toreconciling household survey and national accounts data, by re-estimating thesampling weight through minimization of entropy distance of information takinghousehold survey weight as prior, while satisfying some aggregation constraints.The estimated weight then is used to calculate standard indicator of inequalityin Indonesia. The results suggests that while inequality in rural Indonesia doesnot change much, due to possible under-representation of the rich in the survey, inequality in urban Indonesia is highly under-estimated. The "Jakarta factor"seems to account mostly to this discrepancy.
|Item Type:||MPRA Paper|
|Institution:||Department of Economics, Padjadjaran University|
|Original Title:||On the re-assessment of inequality in Indonesia: household survey or national account?|
|Keywords:||inequality; Indonesia; entropy|
|Subjects:||C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs > C80 - General
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
|Depositing User:||Arief Anshory Yusuf|
|Date Deposited:||09. Feb 2007|
|Last Modified:||12. Feb 2013 20:02|
Surbakti, Pajung ,1995. Indonesia's National Socio-Economic Survey: A Continual Data Source for Analysis of WelfareDevelopment. Biro Pusat Statistik, Jakarta. Lofgren, Hans, Rebecca Lee Harris, and Sherman Robinson (2002), A standard computable general equilibrium (CGE) model in GAMS, International Food Policy Research Institute. Akita Takahiro, Rizal Affandi Lukman, and Yukido Amanda, Inequality in the Distribution of Household Expenditures in Indonesia: A Theil Decomposition Analysis, The Developing Economies, 37(2), June 1999: 197-221. Robilliard, Anne-Sophie and Sherman Robinson, 2003, Reconciling Household Survey and National Accounts Data Using A Cross Entropy Estimation Method, Review of Income and Wealth, 49(3): 395-406.