The use of beta regression in the modelling of severe material deprivation indicator in the European Union countries

In: Wiadomości statystyczne / Glówny Urza̜d Statystyczny, Polskie Towarzystwo Statystyczne: czasopismo Głównego Urze̜du Statystycznego i Polskiego Towarzystwa = ˜Theœ Polish statistician, Volume 63, Issue 3, p. 24-39

Abstract

The severe material deprivation rate indicates the proportion of the population that cannot fulfil at least four of the nine needs identified as basic ones in the European conditions. The study attempts to identify factors differentiating this indicator in the European Union countries. The parameters for regression beta models were estimated on the basis of data from the European Survey of Income and Living Conditions (EU-SILC) for 2014. Such models are useful when the value of the dependent variable interval is included between 0 and 1.
It was found that severe material deprivation rate is affected by such factors as: type of household, median equalized disposable income, at-risk-of-poverty rate, relative median at-risk-of-poverty gap, inequality of income distribution, long-term unemployment rate, GDP per capita, and share of social protection expenditure in GDP.