REGIONAL POVERTY ANALYSIS TECHNICAL WORKSHOP

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Presentation transcript:

REGIONAL POVERTY ANALYSIS TECHNICAL WORKSHOP Estimating imputed rent Kim Robertson (ADB/SPC Regional Poverty Programme Team Leader) REF: Working Paper 2.1

SNA ‘Notional’ value of rent Owner-occupied housing only Large rental market & ‘western’ style (similar quality) housing: use average rents actually paid to derive values (fine tune using housing type to derive different averages) Traditional / non permanent housing? Small rental market – average prices not reliable

Valuation methods Respondent reported values – if you rented this house what would you expect to pay for it? Respondent reported values adjusted by housing characteristics using regression (type, year of construction, size, number of rooms etc) Imputed rent as a percentage (nominal) of the capital value of the house (World Bank, Viet Nam)

Recommended method Respondent reported values: use these if they are within acceptable limits for all housing types Determine values using regression factors based on respondent reported values and housing type, construction materials, location (rural/urban, island) (if there are differences in quality of housing within traditional housing Check values using an upper limit (20%) of total household expenditure as the maximum value