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Measuring aggregate welfare in developing countries - How well do national accounts and surveys agree?

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Author Info
Ravallion, Martin

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Abstract

In a data set for developing, and transition economies, the author finds that private consumption per capita, based on 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 the national accounts mean, tends to fall over time. But there are revealing exceptions to these general findings. The aggregate difference in the levels is due more to income surveys, than to expenditure surveys. And there are strong regional effects; for example, the severe data problems in the transition economies of Eastern Europe, and Central Asia, means that there is negligible correlation in that region, between growth rates from national accounts, and those from household surveys.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2665.

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Date of creation: 31 Aug 2001
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Handle: RePEc:wbk:wbrwps:2665

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Keywords: Social Analysis Economic Conditions and Volatility Environmental Economics&Policies Economic Theory&Research Statistical&Mathematical Sciences Inequality Pro-Poor Growth and Inequality Governance Indicators Economic Conditions and Volatility Environmental Economics&Policies

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References listed on IDEAS
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.:
  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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Cited by:
(explanations, 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.)

  1. Javier Ruiz-Castillo Ucelay, 2005. "Relative And Absolute Poverty. The Case Of México, 1992-2004," Economics Working Papers we061103, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  2. 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!]
    Other versions:
  3. 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!]
  4. 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!]
  5. 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!]
  6. 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!]
  7. Freund, Caroline & Spatafora, Nikola, 2005. "Remittances : transaction costs, determinants, and informal flows," Policy Research Working Paper Series 3704, The World Bank. [Downloadable!]
  8. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
  9. 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!]
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