Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index

Hendrik Wolff (), Howard Chong () and Maximilian Auffhammer

No 16572, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We measure and examine data error in health, education and income statistics used to construct the Human Development Index. We identify three sources of data error which are due to (i) data updating, (ii) formula revisions and (iii) thresholds to classify a country's development status. We propose a simple statistical framework to calculate country specific measures of data uncertainty and investigate how data error biases rank assignments. We find that up to 34% of countries are misclassified and, by replicating prior studies, we show that key estimated parameters vary by up to 100% due to data error.

JEL-codes: C43 (search for similar items in EconPapers)
Date: 2010-12
Note: EH POL
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Citations: View citations in EconPapers (8)

Published as Hendrik Wolff & Howard Chong & Maximilian Auffhammer, 2011. "Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index," Economic Journal, Royal Economic Society, vol. 121(553), pages 843-870, 06.

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Journal Article: Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index (2011)
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