Abstract
The availability of open government data has expanded considerably in recent years. This expansion is expected to generate significant benefits not just for increasing government transparency, but also for the economy. The aim of this study is to illustrate the use of open government data in estimating personal income levels for all 3181 municipalities, towns, and communes in Romania. The novelty of our work comes from the high granularity of the estimates obtained. We use tax revenues collected by local governments in Romania on vehicles and buildings owned by natural persons, as well as data on energy subsidies. The classification is conducted using the k-means clustering algorithm. We find three distinct clusters of communities, which we map. The results can benefit both businesses and policymakers. The former can use the income level estimates for market intelligence purposes, while for the latter, these may aid in determining the financial sustainability of local governments and a better allocation of central government resources at the subnational level.
Highlights
Having reliable estimates of personal income levels at a highly granular level is of paramount importance for businesses and policymakers alike
It is in this context that we propose using a novel open government database not primarily intended for this purpose
In the case of clustering based on tax data only (Figure 1), the low-income group is characterized by a reduced level of taxes on both buildings and vehicles
Summary
Having reliable estimates of personal income levels at a highly granular level is of paramount importance for businesses and policymakers alike. This may be achieved using population census data. Most of the data regarding income and living standards (e.g., average wages) is collected at the county level. With only 41 counties in Romania, this is insufficient to provide an accurate estimate of the affluence of households across the country. It is in this context that we propose using a novel open government database not primarily intended for this purpose
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
