Small area estimation of poverty proportions under unit-level temporal binomial-logit mixed models. (2018) Spriger Link. 27 (2) : 270-294

Hobza, T. (Department of Mathematics, Czech Technical University in Prague); Morales, D. (Operations Research Center, Miguel Hernández University of Elche); Santamaría, L. (Operations Research Center, Miguel Hernández University of Elche)

Abstract. Poverty proportions are averages of dichotomic variables that can be explained by unit-level binomial-logit mixed models. The change between the poverty proportions of two consecutive years is an indicator describing the evolution of poverty. This paper applies a unit-level temporal binomial-logit mixed model for estimating poverty proportions and their changes. The model parameters are estimated by the maximum likelihood method for the Laplace approximation of the loglikelihood. The empirical best predictors (EBP) of proportions and changes are calculated and compared with plug-in estimators. The mean squared error of the EBP is estimated by a parametric bootstrap. A simulation experiment is carried out to study the empirical behavior of the EBP and the plug-in estimators. An application to the estimation of poverty proportions and changes in counties of the region of Valencia, Spain, is given.

A note on measuring group performance over time with pseudo-panels

Aparicio, J.(Center of Operations Research (CIO), Miguel Hernandez University of Elche); Santin, D. ( Department of Applied Economics VI, Complutense University of Madrid).

Abstract. Aparicio, Crespo-Cebada, Pedraja-Chaparro, and Santin (2017) recently extended the Camanho and Dyson (2006) Malmquist-type index (CDMI) for determining group performance in cross-sectional studies to panel or pseudo-panel databases. In that paper, it was shown that the pseudo-panel Malmquist index (PPMI) can be easily interpreted as the ratio of aggregated productivity changes in two groups of decision making units over time, if and only if a new difficult-to-interpret term, the so called ‘divergence compo- nent’ (DC), is equal to one. The aim of this paper is twofold. First, based upon considering a baseline group technology, we define a new base-group base-period PPMI where the DC always vanishes. Second, when more than two groups are analyzed, we show that under this framework the new base-group base- period PPMI, the new base-group CDMI and the components of both indexes satisfy the circular relation. Both results will make it easier for practitioners applying the two indexes in different economic sectors, regardless of how many groups are being compared.