The World Bank Research Observer Advance Access published online on September 22, 2007
The World Bank Research Observer, doi:10.1093/wbro/lkm009
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Using Global Positioning Systems in Household Surveys for Better Economics and Better Policy
Distance and location are the important determinants of many choices that economists study. Economists often rely on information about these variables that is self-reported by respondents in surveys, although information can sometimes be obtained from secondary sources. Self-reports are typically used for information on distance from households or community centers to roads, markets, schools, clinics, and other public services. There is growing evidence that self-reported distance is measured with error and that these errors are correlated with outcomes of interest. In contrast to self-reports, global positioning systems (GPS) can determine location within 15 m in most cases. The falling cost of GPS receivers makes it increasingly feasible for field surveys to use GPS to more accurately measure location and distance. This article reviews four ways that GPS can lead to better economics and better policy by clarifying policy externalities and spillovers, by improving the understanding of access to services, by improving the collection of household survey data, and by providing data for econometric modeling of the causal impact of policies. Several pitfalls and unresolved problems with using GPS in household surveys are also discussed.
John Gibson is a Professor of Economics at the University of Waikato; his email address is jkgibson{at}mngt.waikato.ac.nz. David McKenzie (corresponding author) is a senior economist in the Development Research Group at the World Bank; his email address is dmckenzie{at}worldbank.org. The authors are grateful to Kathleen Beegle, Chris Bennett, Piet Buys, Geua Boe-Gibson, Alan de Brauw, Uwe Deichmann, John Hoddinott, Ben Olken, Duncan Thomas, John Thyne, three anonymous referees, and participants at the 2007 Stanford Institute for Theoretical Economics Conference for helpful comments and advice. This article is dedicated to the memory of Piet Buys, who championed global information system use at the World Bank through his knowledge, enthusiasm, and eagerness to help others use this emerging technology.