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Guidelines for Constructing Consumption Aggregates for Welfare Analysis

Author

Listed:
  • Deaton, A.
  • Zaidi, S.

Abstract

In recent years, in much of the World Bank's operational work as well as in applied research, consumption aggregates constructed from survey data have been used to measure poverty, to analyse changes in living standards, over time, and to assess the distributional impacts of various programs and policies. This paper seeks to fill the gap by providing a brief theoretical introduction followed by practical advice on how to construct a consumption aggregate from household survey data.

Suggested Citation

  • Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
  • Handle: RePEc:fth:priwds:192
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-744, August.
    3. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, July.
    4. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
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    More about this item

    Keywords

    POVERTY ; CONSUMPTION ; HOUSEHOLD;
    All these keywords.

    JEL classification:

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

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