Household welfare measurement and the pricing of basic services
AbstractEmploying total consumption as a household-level welfare indicator with which to measure poverty has often been criticized because it is felt that such an indicator does not account for differing access to, and cost of, publicly provided services. This paper discusses when and how adjustments can be made to expenditures derived from household surveys so as to reflect the consumption of basic services. Markets which are subsidized, rationed and subject to increasing marginal tariff pricing are examined and simple adjustment methods are discussed. Using Ecuador to illustrate the methods, the paper shows that incorporating adjustments in markets for basic services can significantly alter poverty estimates. Including such adjustments into a comprehensive measure of welfare can therefore be important and can also contribute to the wider acceptance and use of consumption as a welfare indicator guiding public policy development. Copyright © 2000 John Wiley & Sons, Ltd.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.
Volume (Year): 12 (2000)
Issue (Month): 1 ()
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Other versions of this item:
- Hentschel, Jesko & Lanjouw, Peter, 1998. "Household welfare measurement and the pricing of basic services," Policy Research Working Paper Series 2006, The World Bank.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hentschel, J. & Lanjouw, P., 1996. "Constructing an Indicator of Consumption for the Analysis of Poverty. Principles and Illustrations with Reference to Ecuador," Papers 127, World Bank - Living Standards Measurement.
- Martin Ravallion & Gaurav Datt, 1995. "Is Targeting Through a Work Requirement Efficient? Some Evidence for Rural India," Monash Economics Working Papers archive-41, Monash University, Department of Economics.
- Deichman, Uwe & Lall, Somik V. & Suri, Ajay & Rajoria, Pragya, 2003. "Information-based instruments for improved urban management," Policy Research Working Paper Series 3002, The World Bank.
- Deichmann, Uwe & Lall, Somik V., 2003. "Are you satisfied? citizen feedback and delivery of urban services," Policy Research Working Paper Series 3070, The World Bank.
- repec:ilo:ilowps:385551 is not listed on IDEAS
- Deichmann, Uwe & Lall, Somik V., 2007. "Citizen Feedback and Delivery of Urban Services," World Development, Elsevier, vol. 35(4), pages 649-662, April.
- Klytchnikova, Irina & Lokshin, Michael, 2007. "Measuring welfare gains from better quality infrastructure," Policy Research Working Paper Series 4217, The World Bank.
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