Guidelines for Constructing Consumption Aggregates for Welfare Analysis
An analyst using household survey data to construct a welfare metric is often confronted with onfronted with An analyst using household survey data to construct a welfare metric is often confronted with a number of theoretical and practical problem...
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2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/05/1944189/guidelines-constructing-consumption-aggregates-welfare-analysis http://hdl.handle.net/10986/14101 |
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okr-10986-141012021-04-23T14:03:11Z Guidelines for Constructing Consumption Aggregates for Welfare Analysis Deaton, Angus Zaidi, Salman AGRICULTURE AVERAGE LEVEL CASE STUDIES CONCEPTUAL FRAMEWORK CONSUMER PREFERENCES CONSUMERS CONSUMPTION AGGREGATE CONSUMPTION BUNDLE CONSUMPTION DATA CONSUMPTION MEASURES CONSUMPTION SURVEYS COST FUNCTIONS DATA SETS DEFLATION DEMAND FUNCTIONS DEVELOPING COUNTRIES DEVELOPMENT RESEARCH DISTRIBUTIONAL EFFECTS DURABLE GOODS ECONOMIC MANAGEMENT ECONOMISTS EMPIRICAL LITERATURE EMPLOYMENT EXPENDITURE MEASURE EXPENDITURE SURVEY EXPENDITURES FARM HOUSEHOLDS FIXED PRICES FOOD CONSUMPTION HEALTH STATUS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN WELFARE INCOME INCOME DATA INCOME DISTRIBUTION INCOMES INDIFFERENCE CURVE INDIFFERENCE CURVES INDIVIDUAL INCOME INEQUALITY LEISURE LIVING INDEX LIVING STANDARDS LIVING STANDARDS MEASUREMENT LIVING STANDARDS MEASUREMENT STUDY MARGINAL VALUE MONEY INCOME NATIONAL INCOME NATIONAL INCOME ACCOUNTING NON-FOOD ITEMS POLICY ANALYSIS POLICY ISSUES POLICY MAKERS POOR COUNTRIES POVERTY ANALYSIS POVERTY LINE POVERTY REDUCTION PRESENT VALUE PRICE DIFFERENCES PRICE INDEXES PRICE RELATIVES PRICE VECTOR PRICE VECTORS PUBLIC GOOD PUBLIC GOODS QUESTIONNAIRE REDISTRIBUTIVE POLICY REGIONAL PRICE DIFFERENCES RELATIVE PRICES SMALL BUSINESS SPATIAL CONTEXT STATISTICAL OFFICES SURVEY UTILITY LEVEL UTILITY POVERTY WAGE INCOME WEALTH WELFARE EFFECTS An analyst using household survey data to construct a welfare metric is often confronted with onfronted with An analyst using household survey data to construct a welfare metric is often confronted with a number of theoretical and practical problems. What components should be included in the overall welfare measure? Should differences in tastes be taken into account when making comparisons across people and households? How best should differences in cost-of-living and household composition be taken into consideration? Starting with a brief review of the theoretical framework underpinning typical welfare analysis undertaken based on household survey data, this paper provides some practical guidelines and advice on how best to tackle such problems. It outlines a three-part procedure for constructing a consumption-based measure of individual welfare: 1) aggregation of different components of household consumption to construct a nominal consumption aggregate; 2) construction of price indices to adjust for differences in prices faced by households; and 3) adjustment of the real consumption aggregate for differneces in household composition. Examples based on survey data fro eight countries--Ghana, Vietnam, Nepal, the Kyrgyz Republic, Ecuador, South Africa, Panama, and Brazil--are used to illustrate the various steps involved in constructing the welfare measure, and the STATA programs used for this purpose are provided in the appendix. The paper also includes examples of some analytic techniques used to examine the robustness of the estimated welfare measure to underlying assumptions. 2013-06-20T21:22:51Z 2013-06-20T21:22:51Z 2002-05 http://documents.worldbank.org/curated/en/2002/05/1944189/guidelines-constructing-consumption-aggregates-welfare-analysis 0-8213-4990-2 http://hdl.handle.net/10986/14101 English en_US LSMS Working Paper;No. 135 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Publications & Research :: Publication Publications & Research :: Publication Africa East Asia and Pacific Europe and Central Asia Latin America & Caribbean South Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE AVERAGE LEVEL CASE STUDIES CONCEPTUAL FRAMEWORK CONSUMER PREFERENCES CONSUMERS CONSUMPTION AGGREGATE CONSUMPTION BUNDLE CONSUMPTION DATA CONSUMPTION MEASURES CONSUMPTION SURVEYS COST FUNCTIONS DATA SETS DEFLATION DEMAND FUNCTIONS DEVELOPING COUNTRIES DEVELOPMENT RESEARCH DISTRIBUTIONAL EFFECTS DURABLE GOODS ECONOMIC MANAGEMENT ECONOMISTS EMPIRICAL LITERATURE EMPLOYMENT EXPENDITURE MEASURE EXPENDITURE SURVEY EXPENDITURES FARM HOUSEHOLDS FIXED PRICES FOOD CONSUMPTION HEALTH STATUS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN WELFARE INCOME INCOME DATA INCOME DISTRIBUTION INCOMES INDIFFERENCE CURVE INDIFFERENCE CURVES INDIVIDUAL INCOME INEQUALITY LEISURE LIVING INDEX LIVING STANDARDS LIVING STANDARDS MEASUREMENT LIVING STANDARDS MEASUREMENT STUDY MARGINAL VALUE MONEY INCOME NATIONAL INCOME NATIONAL INCOME ACCOUNTING NON-FOOD ITEMS POLICY ANALYSIS POLICY ISSUES POLICY MAKERS POOR COUNTRIES POVERTY ANALYSIS POVERTY LINE POVERTY REDUCTION PRESENT VALUE PRICE DIFFERENCES PRICE INDEXES PRICE RELATIVES PRICE VECTOR PRICE VECTORS PUBLIC GOOD PUBLIC GOODS QUESTIONNAIRE REDISTRIBUTIVE POLICY REGIONAL PRICE DIFFERENCES RELATIVE PRICES SMALL BUSINESS SPATIAL CONTEXT STATISTICAL OFFICES SURVEY UTILITY LEVEL UTILITY POVERTY WAGE INCOME WEALTH WELFARE EFFECTS |
| spellingShingle |
AGRICULTURE AVERAGE LEVEL CASE STUDIES CONCEPTUAL FRAMEWORK CONSUMER PREFERENCES CONSUMERS CONSUMPTION AGGREGATE CONSUMPTION BUNDLE CONSUMPTION DATA CONSUMPTION MEASURES CONSUMPTION SURVEYS COST FUNCTIONS DATA SETS DEFLATION DEMAND FUNCTIONS DEVELOPING COUNTRIES DEVELOPMENT RESEARCH DISTRIBUTIONAL EFFECTS DURABLE GOODS ECONOMIC MANAGEMENT ECONOMISTS EMPIRICAL LITERATURE EMPLOYMENT EXPENDITURE MEASURE EXPENDITURE SURVEY EXPENDITURES FARM HOUSEHOLDS FIXED PRICES FOOD CONSUMPTION HEALTH STATUS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN WELFARE INCOME INCOME DATA INCOME DISTRIBUTION INCOMES INDIFFERENCE CURVE INDIFFERENCE CURVES INDIVIDUAL INCOME INEQUALITY LEISURE LIVING INDEX LIVING STANDARDS LIVING STANDARDS MEASUREMENT LIVING STANDARDS MEASUREMENT STUDY MARGINAL VALUE MONEY INCOME NATIONAL INCOME NATIONAL INCOME ACCOUNTING NON-FOOD ITEMS POLICY ANALYSIS POLICY ISSUES POLICY MAKERS POOR COUNTRIES POVERTY ANALYSIS POVERTY LINE POVERTY REDUCTION PRESENT VALUE PRICE DIFFERENCES PRICE INDEXES PRICE RELATIVES PRICE VECTOR PRICE VECTORS PUBLIC GOOD PUBLIC GOODS QUESTIONNAIRE REDISTRIBUTIVE POLICY REGIONAL PRICE DIFFERENCES RELATIVE PRICES SMALL BUSINESS SPATIAL CONTEXT STATISTICAL OFFICES SURVEY UTILITY LEVEL UTILITY POVERTY WAGE INCOME WEALTH WELFARE EFFECTS Deaton, Angus Zaidi, Salman Guidelines for Constructing Consumption Aggregates for Welfare Analysis |
| geographic_facet |
Africa East Asia and Pacific Europe and Central Asia Latin America & Caribbean South Asia |
| relation |
LSMS Working Paper;No. 135 |
| description |
An analyst using household survey data
to construct a welfare metric is often confronted with
onfronted with An analyst using household survey data to
construct a welfare metric is often confronted with a number
of theoretical and practical problems. What components
should be included in the overall welfare measure? Should
differences in tastes be taken into account when making
comparisons across people and households? How best should
differences in cost-of-living and household composition be
taken into consideration? Starting with a brief review of
the theoretical framework underpinning typical welfare
analysis undertaken based on household survey data, this
paper provides some practical guidelines and advice on how
best to tackle such problems. It outlines a three-part
procedure for constructing a consumption-based measure of
individual welfare: 1) aggregation of different components
of household consumption to construct a nominal consumption
aggregate; 2) construction of price indices to adjust for
differences in prices faced by households; and 3) adjustment
of the real consumption aggregate for differneces in
household composition. Examples based on survey data fro
eight countries--Ghana, Vietnam, Nepal, the Kyrgyz Republic,
Ecuador, South Africa, Panama, and Brazil--are used to
illustrate the various steps involved in constructing the
welfare measure, and the STATA programs used for this
purpose are provided in the appendix. The paper also
includes examples of some analytic techniques used to
examine the robustness of the estimated welfare measure to
underlying assumptions. |
| format |
Publications & Research :: Publication |
| author |
Deaton, Angus Zaidi, Salman |
| author_facet |
Deaton, Angus Zaidi, Salman |
| author_sort |
Deaton, Angus |
| title |
Guidelines for Constructing Consumption Aggregates for Welfare Analysis |
| title_short |
Guidelines for Constructing Consumption Aggregates for Welfare Analysis |
| title_full |
Guidelines for Constructing Consumption Aggregates for Welfare Analysis |
| title_fullStr |
Guidelines for Constructing Consumption Aggregates for Welfare Analysis |
| title_full_unstemmed |
Guidelines for Constructing Consumption Aggregates for Welfare Analysis |
| title_sort |
guidelines for constructing consumption aggregates for welfare analysis |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/05/1944189/guidelines-constructing-consumption-aggregates-welfare-analysis http://hdl.handle.net/10986/14101 |
| _version_ |
1764425202691735552 |