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Measuring Household Welfare: Short versus long consumption modules

  • Luisa Natali
  • Marta Moratti

The literature review mainly focuses on studies from the 1990s on developing countries. Available evidence seems to indicate that short modules underestimate consumption with respect to longer ones resulting in lower levels of recorded consumption and therefore less accurate estimates and higher poverty rates. However, one of the most complete, recent and authoritative studies in the field (Beegle et al., 2010) finds that short modules may actually result in a smaller downward bias compared to the benchmark than other longer consumption modules.

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Paper provided by Innocenti Working Papers in its series Papers with number inwopa671.

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Length: 26
Date of creation: 2012
Date of revision:
Handle: RePEc:ucf:inwopa:inwopa671
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  1. Carlo Azzarri & Gero Carletto & Benjamin Davis & Alberto Zezza, 2006. "Monitoring Poverty Without Consumption Data : An Application Using the Albania Panel Survey," Eastern European Economics, M.E. Sharpe, Inc., vol. 44(1), pages 59-82, February.
  2. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
  3. Booysen, Frikkie & van der Berg, Servaas & Burger, Ronelle & Maltitz, Michael von & Rand, Gideon du, 2008. "Using an Asset Index to Assess Trends in Poverty in Seven Sub-Saharan African Countries," World Development, Elsevier, vol. 36(6), pages 1113-1130, June.
  4. Morris, Saul Sutkover & Calogero, Carletto & Hoddinott, John & Christiaensen, Luc J. M., 1999. "Validity of rapid estimates of household wealth and income for health surveys in rural Africa," FCND discussion papers 72, International Food Policy Research Institute (IFPRI).
  5. Korinek, Anton & Mistiaen, Johan A. & Ravallion, Martin, 2005. "Survey nonresponse and the distribution of income," Policy Research Working Paper Series 3543, The World Bank.
  6. Mark Montgomery & Michele Gragnolati & Kathleen Burke & Edmundo Paredes, 2000. "Measuring living standards with proxy variables," Demography, Springer, vol. 37(2), pages 155-174, May.
  7. Martin Browning & Thomas F. Crossley & Guglielmo Weber, 2003. "Asking consumption questions in general purpose surveys," Economic Journal, Royal Economic Society, vol. 113(491), pages F540-F567, November.
  8. Beegle, Kathleen & De Weerdt, Joachim & Friedman, Jed & Gibson, John, 2010. "Methods of household consumption measurement through surveys : experimental results from Tanzania," Policy Research Working Paper Series 5501, The World Bank.
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