The Impact of Local Public Services and Geographical Cost of Living Differences on Poverty Estimates

Research, Preprint OPEN
Aaberge, Rolf ; Langørgen, Audun ; Mogstad, Magne ; Østensen, Marit (2008)
  • Publisher: Statistics Norway, Research Department
  • Subject: JEL classification: H72 | H72 | D31 | JEL classification: I30 | Regionale Disparität | Municipal-specific poverty lines | Lokales öffentliches Gut | geographical cost of living differences, in-kind transfers, public services, poverty, housing price indices, municipal-specific poverty lines | I30 | Offentlige tjenester | Norwegen | JEL classification: D31 | Public services | Fattigdom | Poverty | Housing price indices | Lebenshaltungskosten | Levekostnader | Poverty; public services; in-kind transfers; geographical cost of living differences; housing price indices; municipal-specific poverty lines | in-kind transfers | Armut | Kommunale tjenester | Geographical cost of living differences | Geografiske forskjeller
    • ddc: ddc:330
      jel: jel:H72 | jel:D31 | jel:I30

Abstract: Despite a broad consensus on the need to account for the value of public services and geographical cost of living differences on the measurement of poverty, there is little reliable evidence on how these factors actually affect poverty estimates. Unlike the... View more
  • References (1)

    18 The model is estimated on a per capita basis by the maximum likelihood method where the error terms were assumed to have a multivariate normal distribution with mean vector 0 and unrestricted covariance matrix. See Aaberge and Langørgen (2003) for an extensive assessment of model specification. Note that the majority of the variables included in the model are also used as compensation criteria in the Norwegian cost-equalising formula for intergovernmental grants. 1993-1995 1996-1998 1999-2001 Malpezzi, S., H. Patric, and J. Shilling (1998): “What's Happened to the Bottom of the Housing Market?”, Urban Studies, 33, 1807-1820.

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