Government Matters III: Governance Indicators for 1996-2002

  • Kaufmann D
  • Kraay A
  • Mastruzzi M
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This paper presents estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. We assign these individual measures of governance to categories capturing key dimensions of governance, and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. We present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. We also address various methodological issues, including tests for potential biases, and the interpretation and use of the data given the estimated margins of errors for our indicators as well as for others. The data, as well as a web-based graphical interface, are available at

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  • Daniel Kaufmann

  • a Kraay

  • Massimo Mastruzzi

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