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By Jesko Hentschel

ISBN-10: 0821335847

ISBN-13: 9780821335840

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G. Ravallion, 1994, 1995, Bidani and Ravallion, 1994, Atkinson, 1993 and Lanjouw, 1995). 3. See Lipton and Ravallion (1995) for a survey of empirical studies describing on the characteristics of the poor, and the determinants and correlates of poverty. Page 2 from the same survey, thereby strengthening the link between the welfare indicator used in the analysis and the threshold determined to separate the poor from the nonpoor. Obviously, even if consumption is taken as a major indicator of wellbeing in a study of poverty, it is important to complement the analysis with other dimensions of welfare, such as access to basic public services, nutritional status, education, and so on.

The understatement of total food consumption among households with some missing information could have a larger impact on the ultimate ranking of individuals in terms of final consumption than would be the case under the averaging exercise described above. As ever, it is the extent to which we are able to rank households which concerns us most. With respect to the consumption of home produced food items, LSMS-style surveys generally include one or more specific questions on the particular topic.

In this paper, we will illustrate the aggregation of consumption expenditures using the Ecuador LSMS so a brief word about the data may be helpful. The Ecuador household survey (Ecuador Encuesta Sobre las Condiciones de Vida) is a nationally representative household survey modelled on the World Bank's Living Standards Measurement Surveys. It was fielded by the Servicio Ecuatoriana de Capacitacion (SECAP) in Ecuador during the period June September, 1994. Over 4,500 households were surveyed in total and after cleaning and data consistency checks, information for 4,391 households is available for analysis.

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Constructing an indicator of consumption for the analysis of poverty: principles and illustrations with reference to Ecuador by Jesko Hentschel


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