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Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree?

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Martin Ravallion (World Bank)

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Abstract

In a cross-country data set for developing and transitional economies, private consumption per capita from the national accounts deviates on average from mean household income or expenditure based on national sample surveys. Growth rates also differ systematically, so that the ratio of the survey mean to mean consumption from the national accounts tends to fall over time. The exceptions to these general findings are revealing, however. There are strong regional effects. The aggregate difference in the levels is due more to income surveys than to expenditure surveys. Divergence over time is mainly due to the severe data problems in the (contracting) transition economies. Copyright (c) 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 85 (2003)
Issue (Month): 3 (05)
Pages: 645-652
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Handle: RePEc:tpr:restat:v:85:y:2003:i:3:p:645-652

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  1. Wu, Harry X, 2000. "China's GDP Level and Growth Performance: Alternative Estimates and the Implications," Review of Income and Wealth, Blackwell Publishing, vol. 46(4), pages 475-99, December.
  2. Ruggles, Richard & Ruggles, Nancy D, 1986. "The Integration of Macro and Micro Data for the Household Sector," Review of Income and Wealth, Blackwell Publishing, vol. 32(3), pages 245-76, September.
  3. Rendtel, Ulrich & Langeheine, Rolf & Berntsen, Roland, 1998. "The Estimation of Poverty Dynamics Using Different Measurements of Household Income," Review of Income and Wealth, Blackwell Publishing, vol. 44(1), pages 81-98, March.
  4. Martin Ravallion & Shubham Chaudhuri, 1997. "Risk and Insurance in Village India: Comment," Econometrica, Econometric Society, vol. 65(1), pages 171-184, January.
  5. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, Oxford University Press, vol. 11(2), pages 357-82, May.
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  6. Bloem, Adriaan M & Cotterell, Paul & Gigantes, Terry, 1998. "National Accounts in Transition Countries: Balancing the Biases?," Review of Income and Wealth, Blackwell Publishing, vol. 44(1), pages 1-24, March.
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  2. Demombynes, Gabriel & Hoogeveen, Johannes G., 2004. "Growth, inequality, and simulated poverty paths for Tanzania, 1992-2002," Policy Research Working Paper Series 3432, The World Bank. [Downloadable!]
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  3. Canova, Luciano, 2006. "The many dimensions of poverty in Albania: income, wealth and perceptions," MPRA Paper 922, University Library of Munich, Germany. [Downloadable!]
  4. Spryskov Dmitry, 2003. "Below the Poverty Line: Duration of Poverty in Russia," EERC Working Paper Series 03-04e, EERC Research Network, Russia and CIS. [Downloadable!]
  5. Kenneth W. Clements & Yihui Lan, 2004. "Exchange Rates, Productivity, Poverty and Inequality," Economics Discussion / Working Papers 04-13, The University of Western Australia, Department of Economics. [Downloadable!]
  6. Charlotte Guénard & Sandrine Mesplé-Somps, 2004. "Mesurer les inégalités : que captent réellement les enquêtes ? Analyse de deux enquêtes ivoirienne et malgache," Working Papers DT/2004/13, DIAL (Développement, Institutions & Analyses de Long terme), revised Dec 2004. [Downloadable!]
  7. Yusuf, Arief Anshory, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," MPRA Paper 1730, University Library of Munich, Germany. [Downloadable!]
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  8. Charles Meth, 2007. "Sticking to the Facts: Official and Unofficial Stories about Poverty and Unemployment in South Africa," Working Papers 9699, University of Cape Town, Development Policy Research Unit. [Downloadable!]
  9. Rasmus Heltberg, 2009. "Malnutrition, poverty, and economic growth," Health Economics, John Wiley & Sons, Ltd., vol. 18(S1), pages S77-S88. [Downloadable!]
  10. Stifel, David & Christiaensen, Luc, 2006. "Tracking poverty over time in the absence of comparable consumption data," Policy Research Working Paper Series 3810, The World Bank. [Downloadable!]
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  11. Rana Hasan & M.G. Quibria & Yangseon Kim, 2003. "Poverty and Economic Freedom: Evidence from Cross-Country Data," Economics Study Area Working Papers 60, East-West Center, Economics Study Area. [Downloadable!]
  12. Freund, Caroline & Spatafora, Nikola, 2005. "Remittances : transaction costs, determinants, and informal flows," Policy Research Working Paper Series 3704, The World Bank. [Downloadable!]
  13. Devarajan, Shantayanan & Miller, Margaret J. & Swanson, Eric V., 2002. "Goals for development : history, prospects and costs," Policy Research Working Paper Series 2819, The World Bank. [Downloadable!]
  14. Alessandra Bonfiglioli, 2005. "Equities and Inequality," Economics Working Papers 947, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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