Guidelines for Constructing Consumption Aggregates for Welfare Analysis

Show simple item record

collection.link.213
https://openknowledge.worldbank.org/handle/10986/11866
collection.name.213
Other papers
dc.contributor.author
Deaton, Angus
dc.contributor.author
Zaidi, Salman
dc.date.accessioned
2013-06-20T21:22:51Z
dc.date.available
2013-06-20T21:22:51Z
dc.date.issued
2002-05
dc.date.lastModified
2020-04-24T15:19:20Z
dc.description.abstract
An analyst using household survey data to construct a welfare metric is often confronted with onfronted with An analyst using household survey data to construct a welfare metric is often confronted with a number of theoretical and practical problems. What components should be included in the overall welfare measure? Should differences in tastes be taken into account when making comparisons across people and households? How best should differences in cost-of-living and household composition be taken into consideration? Starting with a brief review of the theoretical framework underpinning typical welfare analysis undertaken based on household survey data, this paper provides some practical guidelines and advice on how best to tackle such problems. It outlines a three-part procedure for constructing a consumption-based measure of individual welfare: 1) aggregation of different components of household consumption to construct a nominal consumption aggregate; 2) construction of price indices to adjust for differences in prices faced by households; and 3) adjustment of the real consumption aggregate for differneces in household composition. Examples based on survey data fro eight countries--Ghana, Vietnam, Nepal, the Kyrgyz Republic, Ecuador, South Africa, Panama, and Brazil--are used to illustrate the various steps involved in constructing the welfare measure, and the STATA programs used for this purpose are provided in the appendix. The paper also includes examples of some analytic techniques used to examine the robustness of the estimated welfare measure to underlying assumptions.
en
dc.identifier
http://documents.worldbank.org/curated/en/2002/05/1944189/guidelines-constructing-consumption-aggregates-welfare-analysis
dc.identifier.isbn
0-8213-4990-2
dc.identifier.uri
http://hdl.handle.net/10986/14101
dc.language
English
dc.language.iso
en_US
dc.relation.ispartofseries
LSMS Working Paper;No. 135
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
AGRICULTURE
dc.subject
AVERAGE LEVEL
dc.subject
CASE STUDIES
dc.subject
CONCEPTUAL FRAMEWORK
dc.subject
CONSUMER PREFERENCES
dc.subject
CONSUMERS
dc.subject
CONSUMPTION AGGREGATE
dc.subject
CONSUMPTION BUNDLE
dc.subject
CONSUMPTION DATA
dc.subject
CONSUMPTION MEASURES
dc.subject
CONSUMPTION SURVEYS
dc.subject
COST FUNCTIONS
dc.subject
DATA SETS
dc.subject
DEFLATION
dc.subject
DEMAND FUNCTIONS
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPMENT RESEARCH
dc.subject
DISTRIBUTIONAL EFFECTS
dc.subject
DURABLE GOODS
dc.subject
ECONOMIC MANAGEMENT
dc.subject
ECONOMISTS
dc.subject
EMPIRICAL LITERATURE
dc.subject
EMPLOYMENT
dc.subject
EXPENDITURE MEASURE
dc.subject
EXPENDITURE SURVEY
dc.subject
EXPENDITURES
dc.subject
FARM HOUSEHOLDS
dc.subject
FIXED PRICES
dc.subject
FOOD CONSUMPTION
dc.subject
HEALTH STATUS
dc.subject
HOUSEHOLD COMPOSITION
dc.subject
HOUSEHOLD CONSUMPTION
dc.subject
HOUSEHOLD DATA
dc.subject
HOUSEHOLD EXPENDITURE
dc.subject
HOUSEHOLD EXPENDITURES
dc.subject
HOUSEHOLD MEMBERS
dc.subject
HOUSEHOLD SIZE
dc.subject
HOUSEHOLD SURVEY
dc.subject
HOUSEHOLD SURVEYS
dc.subject
HUMAN WELFARE
dc.subject
INCOME
dc.subject
INCOME DATA
dc.subject
INCOME DISTRIBUTION
dc.subject
INCOMES
dc.subject
INDIFFERENCE CURVE
dc.subject
INDIFFERENCE CURVES
dc.subject
INDIVIDUAL INCOME
dc.subject
INEQUALITY
dc.subject
LEISURE
dc.subject
LIVING INDEX
dc.subject
LIVING STANDARDS
dc.subject
LIVING STANDARDS MEASUREMENT
dc.subject
LIVING STANDARDS MEASUREMENT STUDY
dc.subject
MARGINAL VALUE
dc.subject
MONEY INCOME
dc.subject
NATIONAL INCOME
dc.subject
NATIONAL INCOME ACCOUNTING
dc.subject
NON-FOOD ITEMS
dc.subject
POLICY ANALYSIS
dc.subject
POLICY ISSUES
dc.subject
POLICY MAKERS
dc.subject
POOR COUNTRIES
dc.subject
POVERTY ANALYSIS
dc.subject
POVERTY LINE
dc.subject
POVERTY REDUCTION
dc.subject
PRESENT VALUE
dc.subject
PRICE DIFFERENCES
dc.subject
PRICE INDEXES
dc.subject
PRICE RELATIVES
dc.subject
PRICE VECTOR
dc.subject
PRICE VECTORS
dc.subject
PUBLIC GOOD
dc.subject
PUBLIC GOODS
dc.subject
QUESTIONNAIRE
dc.subject
REDISTRIBUTIVE POLICY
dc.subject
REGIONAL PRICE DIFFERENCES
dc.subject
RELATIVE PRICES
dc.subject
SMALL BUSINESS
dc.subject
SPATIAL CONTEXT
dc.subject
STATISTICAL OFFICES
dc.subject
SURVEY
dc.subject
UTILITY LEVEL
dc.subject
UTILITY POVERTY
dc.subject
WAGE INCOME
dc.subject
WEALTH
dc.subject
WELFARE EFFECTS
dc.title
Guidelines for Constructing Consumption Aggregates for Welfare Analysis
en
dc.title.alternative
Directrices para construir agregados de consumo para analizar el bienestar
en
okr.doctype
Publications & Research :: Publication
okr.doctype
Publications & Research :: Publication
okr.docurl
http://documents.worldbank.org/curated/en/2002/05/1944189/guidelines-constructing-consumption-aggregates-welfare-analysis
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
000094946_02071304010552
okr.identifier.internaldocumentum
1944189
okr.identifier.report
LSM135
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/07/31/000094946_02071304010552/Rendered/PDF/multi0page.pdf
en
okr.region.administrative
Africa
okr.region.administrative
East Asia and Pacific
okr.region.administrative
Europe and Central Asia
okr.region.administrative
Latin America & Caribbean
okr.region.administrative
South Asia
okr.sector
Health and other social services :: Other social services
okr.topic
Economic Theory and Research
okr.topic
Environmental Economics and Policies
okr.topic
Poverty Reduction :: Poverty Lines
okr.topic
Poverty Reduction :: Poverty Assessment
okr.topic
Poverty Reduction :: Inequality
okr.unit
Development Research Group (DECRG)

Show simple item record



This item appears in the following Collection(s)