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Consumption Subaggregates Should Not Be Used to Measure Poverty (English)

Frequent measurement of poverty is challenging because measurement often relies on complex and expensive expenditure surveys that try to measure expenditures on a comprehensive consumption aggregate. This paper investigates the use of consumption subaggregates instead. The use of consumption subaggregates is theoretically justified if and only if all Engel curves are linear for any realization of prices. This is very stringent. However, it may be...
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Christiaensen,Luc; Ligon,Ethan; Pave Sohnesen,Thomas.

Consumption Subaggregates Should Not Be Used to Measure Poverty (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099940012082310064

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