Abstract
Private consumption capabilities form only one facet of comprehensive living standards assessments, but they are an important facet whose measurement should be done well. Measurement is complex due to a multitude of methodological choices, which often interact with imperfect data and a desire for comparability through time. This chapter outlines ideas underpinning these choices with particular attention to the tensions between consistency and specificity. It also highlights a series of limitations associated with typical cost of basic needs approaches. Finally, it reaffirms that a ‘sensibly eclectic’ approach, employing multiple methods, is the best available mode for addressing these limitations. A first fundamental choice is whether to estimate an absolute poverty line at all. Consumption-based poverty metrics provide only a partial view into the welfare of individuals or households, which may or may not accord with other important facets of welfare.
| Original language | English |
|---|---|
| Title of host publication | Measuring Poverty and Wellbeing in Developing Countries |
| Editors | Channing Arndt, Finn Tarp |
| Publisher | Oxford University Press |
| Publication date | 2017 |
| Pages | 10-23 |
| Chapter | 2 |
| ISBN (Print) | 9780198744801 |
| DOIs | |
| Publication status | Published - 2017 |
Keywords
- Faculty of Social Sciences
- poverty measurement
- poverty line estimation
- utility consistency
- cost of basic needs
- consumption