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Extra resources for Constructing an indicator of consumption for the analysis of poverty: principles and illustrations with reference to Ecuador

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Lanjouw and Lanjouw (1995) explore the implications of this omission on the empirical estimation of Engel curves, and the sensitivity of poverty measures to alternative poverty line specifications and consumption aggregates. See also Deaton and Irish (1983) and Thomas (1986). Page 9 item is recorded. In the Ecuador case, no information on quantities was asked and it was hence not possible to impute a value to the consumption of home-produced food where the entry for household's assessment of value was missing.

Using the Ecuador data we examine, for example, the impact of our assumptions about the shadow prices of services and corrections for cost of living variation on the profile of the poor in Ecuador. In Section 6 we consider the issue of equivalence scales an issue which lies somewhere in between calculating the consumption aggregate and actually analyzing poverty. We argue that the significance of non-uniform family composition and size is best gauged by focussing, again, on the poverty profile.

Conclusion 37 References 39 Page vi Tables Table 1. Daily Consumption of Food Items Per Person in Ecuador 10 Table 2. Ecaudor: Alternative Consumption Definitions 20 Table 3. Ecaudor: The impact on Poverty Measures of Alternative Consumption Aggregations Poverty Incidence, Depth and Severity Based on Cost of Basic Needs Poverty Line 21 Table 4. Ecuador: The Impact on Poverty Measures of Alternative Consumption Aggregations Poverty Incidence, Depth and Severity Based on Food Energy Method Poverty Line 22 Table 5a.

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