Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning

Estimates of poverty are an important input into policy formulation in developing countries. The accurate measurement of poverty rates is therefore a first-order problem for development policy. This paper shows that combining satellite imagery with...

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Main Authors: Newhouse, David, Merfeld, Joshua, Ramakrishnan, Anusha Pudugramam, Swartz, Tom, Lahiri, Partha
Format: Working Paper
Language:English
English
Published: World Bank, Washington, DC 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099430309142231728/IDU0660868530404c0414e0bf180797b525682a5
http://hdl.handle.net/10986/38020
id okr-10986-38020
recordtype oai_dc
spelling okr-10986-380202022-09-16T05:10:36Z Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning Newhouse, David Merfeld, Joshua Ramakrishnan, Anusha Pudugramam Swartz, Tom Lahiri, Partha POVERTY SMALL AREA ESTIMATION POVERTY MAPPING SATELLITE DATA MACHINE LEARNING SUSTAINABLE DEVELOPMENT GOALS POVERTY ERADICATION Estimates of poverty are an important input into policy formulation in developing countries. The accurate measurement of poverty rates is therefore a first-order problem for development policy. This paper shows that combining satellite imagery with household surveys can improve the precision and accuracy of estimated poverty rates in Mexican municipalities, a level at which the survey is not considered representative. It also shows that a household-level model outperforms other common small area estimation methods. However, poverty estimates in 2015 derived from geospatial data remain less accurate than 2010 estimates derived from household census data. These results indicate that the incorporation of household survey data and widely available satellite imagery can improve on existing poverty estimates in developing countries when census data are old or when patterns of poverty are changing rapidly, even for small subgroups. 2022-09-15T16:34:57Z 2022-09-15T16:34:57Z 2022-09 Working Paper http://documents.worldbank.org/curated/en/099430309142231728/IDU0660868530404c0414e0bf180797b525682a5 http://hdl.handle.net/10986/38020 English en Policy Research Working Papers;10175 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
English
topic POVERTY
SMALL AREA ESTIMATION
POVERTY MAPPING
SATELLITE DATA
MACHINE LEARNING
SUSTAINABLE DEVELOPMENT GOALS
POVERTY ERADICATION
spellingShingle POVERTY
SMALL AREA ESTIMATION
POVERTY MAPPING
SATELLITE DATA
MACHINE LEARNING
SUSTAINABLE DEVELOPMENT GOALS
POVERTY ERADICATION
Newhouse, David
Merfeld, Joshua
Ramakrishnan, Anusha Pudugramam
Swartz, Tom
Lahiri, Partha
Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning
geographic_facet Mexico
relation Policy Research Working Papers;10175
description Estimates of poverty are an important input into policy formulation in developing countries. The accurate measurement of poverty rates is therefore a first-order problem for development policy. This paper shows that combining satellite imagery with household surveys can improve the precision and accuracy of estimated poverty rates in Mexican municipalities, a level at which the survey is not considered representative. It also shows that a household-level model outperforms other common small area estimation methods. However, poverty estimates in 2015 derived from geospatial data remain less accurate than 2010 estimates derived from household census data. These results indicate that the incorporation of household survey data and widely available satellite imagery can improve on existing poverty estimates in developing countries when census data are old or when patterns of poverty are changing rapidly, even for small subgroups.
format Working Paper
author Newhouse, David
Merfeld, Joshua
Ramakrishnan, Anusha Pudugramam
Swartz, Tom
Lahiri, Partha
author_facet Newhouse, David
Merfeld, Joshua
Ramakrishnan, Anusha Pudugramam
Swartz, Tom
Lahiri, Partha
author_sort Newhouse, David
title Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning
title_short Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning
title_full Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning
title_fullStr Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning
title_full_unstemmed Small Area Estimation of Monetary Poverty in Mexico Using Satellite Imagery and Machine Learning
title_sort small area estimation of monetary poverty in mexico using satellite imagery and machine learning
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099430309142231728/IDU0660868530404c0414e0bf180797b525682a5
http://hdl.handle.net/10986/38020
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