Abstract
AbstractThis paper analyzes the relation between night lights and poverty rates in Chile using information derived from the US Earth Observations Group through the Visible Infrared Imaging Radiometer Suite (VIIRS), Day/Night Band. Official poverty data are modeled at the municipality level with a fractional multinomial logit model. Indicators of night lights are applied to the estimated model to predict poverty and extreme‐poverty rates of municipalities for which official data are not available, and estimates are aggregated at provincial, regional, and national levels using population data. Results are consistent with official estimates published for the year 2015 and can be effectively used for policy purposes to derive maps of poverty indices with a definition of 500 m2.
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