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  • Deaton, A.
  • Grosh, M.


Part I of this chapter briefly reviews the arguments for using consumption rather than income as a measure of living standards and for using it to measure poverty and inequality. It goes on to discuss the principal uses to which consumption data have been put; while the docu-mentation of living standards remains the central aim of LSMS surveys, there are a number of other important policy issues that can be illuminated using consumption data. Thereafter, Part I reviews some of the experience of more than 10 years of LSMS surveys in collecting consumption data. Part II discusses the data that are needed to construct a consumption-based measure of living standards and reviews the design issues that affect the cost of collecting data as well as its eventual accuracy. Part III presents a draft consumption module, while Part IV provides explanatory notes on that draft module.

Suggested Citation

  • Deaton, A. & Grosh, M., 1998. "Consumption," Papers 191, Princeton, Woodrow Wilson School - Development Studies.
  • Handle: RePEc:fth:priwds:191

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth


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