Housing, Imputed Rent, and Households' Welfare
Housing is the largest durable good consumed by households. As such, any consumption-based measure of welfare, to be comprehensive, must include the value of the flow of services households derive from their dwellings, the so-called imputed rent. H...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/544041565094894609/Housing-Imputed-Rent-and-Households-Welfare http://hdl.handle.net/10986/32207 |
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okr-10986-322072022-09-19T12:16:46Z Housing, Imputed Rent, and Households' Welfare Ceriani, Lidia Olivieri, Sergio Ranzani, Marco RENT IMPUTATION INEQUALITY POVERTY MEASUREMENT SHARED PROSPERITY HOUSEHOLD WELFARE Housing is the largest durable good consumed by households. As such, any consumption-based measure of welfare, to be comprehensive, must include the value of the flow of services households derive from their dwellings, the so-called imputed rent. However, estimating imputed rents is a daunting task, which researchers and practitioners tend to overlook. This paper is the first attempt to assess the distributional impact of including housing in the welfare aggregate; the paper tests two estimation methods and analyzes four developing countries. The distributional impact cannot be predicted a priori, and evidence suggests it is context and method specific. Although changes in poverty and inequality are always statistically significant, they are only occasionally larger than one percentage point. By contrast, shared prosperity exhibits sizable changes, which might also determine international re-rankings. Albeit the inclusion of imputed rents reshuffles the set of poor households, observed changes in the socioeconomic profiling of the poor are unlikely to affect pro-poor policy design. 2019-08-07T19:43:04Z 2019-08-07T19:43:04Z 2019-08 Working Paper http://documents.worldbank.org/curated/en/544041565094894609/Housing-Imputed-Rent-and-Households-Welfare http://hdl.handle.net/10986/32207 English Policy Research Working Paper;No. 8955 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Albania Bangladesh Iraq Peru |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
RENT IMPUTATION INEQUALITY POVERTY MEASUREMENT SHARED PROSPERITY HOUSEHOLD WELFARE |
| spellingShingle |
RENT IMPUTATION INEQUALITY POVERTY MEASUREMENT SHARED PROSPERITY HOUSEHOLD WELFARE Ceriani, Lidia Olivieri, Sergio Ranzani, Marco Housing, Imputed Rent, and Households' Welfare |
| geographic_facet |
Albania Bangladesh Iraq Peru |
| relation |
Policy Research Working Paper;No. 8955 |
| description |
Housing is the largest durable good
consumed by households. As such, any consumption-based
measure of welfare, to be comprehensive, must include the
value of the flow of services households derive from their
dwellings, the so-called imputed rent. However, estimating
imputed rents is a daunting task, which researchers and
practitioners tend to overlook. This paper is the first
attempt to assess the distributional impact of including
housing in the welfare aggregate; the paper tests two
estimation methods and analyzes four developing countries.
The distributional impact cannot be predicted a priori, and
evidence suggests it is context and method specific.
Although changes in poverty and inequality are always
statistically significant, they are only occasionally larger
than one percentage point. By contrast, shared prosperity
exhibits sizable changes, which might also determine
international re-rankings. Albeit the inclusion of imputed
rents reshuffles the set of poor households, observed
changes in the socioeconomic profiling of the poor are
unlikely to affect pro-poor policy design. |
| format |
Working Paper |
| author |
Ceriani, Lidia Olivieri, Sergio Ranzani, Marco |
| author_facet |
Ceriani, Lidia Olivieri, Sergio Ranzani, Marco |
| author_sort |
Ceriani, Lidia |
| title |
Housing, Imputed Rent, and Households' Welfare |
| title_short |
Housing, Imputed Rent, and Households' Welfare |
| title_full |
Housing, Imputed Rent, and Households' Welfare |
| title_fullStr |
Housing, Imputed Rent, and Households' Welfare |
| title_full_unstemmed |
Housing, Imputed Rent, and Households' Welfare |
| title_sort |
housing, imputed rent, and households' welfare |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/544041565094894609/Housing-Imputed-Rent-and-Households-Welfare http://hdl.handle.net/10986/32207 |
| _version_ |
1764476031960350720 |