Sociology 699J: Surveys in Developing Countries

Consumption and Expenditures

Purposes of consumption measurement

• General: as index of standard of living

• as poverty index
• issues of per capita measures and economies of scale

• Specific: for specific types of consumption

• school and education expenditures
• medical expenditures
• fuel expenditures

• For price data

Advantages and disadvantages of consumption (relative to income)

• The economists' argument:
• conceptually: economic theory
• stability
• ease of measure (?)
• A sociological perspective:
• Ritzer: consumerism

Examples of consumption measurement

• HDPI-1 (?)
• LSMS
• UP-Bihar LSMS shorter module
• NSS long form
• NSS short form

Problems of consumption measurement

• respondent fatigue
• time frame: week, month, year, etc.
• recall accuracy
• imputed values for nonmarket consumption

How to evaluate extent of measurement problems

• compare to national accounts (Deaton)
• compare alternatives in predicting outcomes (Filmer & Prtichett)

See also: school expenses
See also: medical care expenses
See also: environment & fuel use

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