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Counting the PoorNew Thinking About European Poverty Measures and Lessons for the United States$
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Douglas J. Besharov and Kenneth A. Couch

Print publication date: 2012

Print ISBN-13: 9780199860586

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780199860586.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 27 October 2021

Consumption-Based Measures in Developing Nations

Consumption-Based Measures in Developing Nations

Lessons from Brazil

(p.273) 13 Consumption-Based Measures in Developing Nations
Counting the Poor

Peter Lanjouw

Oxford University Press

This chapter is concerned with deriving a welfare indicator for households that captures the economic dimensions of well-being. It focuses specifically on Brazil, and illustrates how, in this setting, to construct a welfare indicator based on consumption expenditures. In Brazil, detailed information on household consumption expenditures have been collected in the most recent Pesquisa de Or ç amentos Familiares (POF) of 2002/2003 fielded by the Instituto Brasileiro de Geografia e Estatística (IBGE). The chapter considers how best to construct a consumption aggregate from these data for the purpose of analyzing poverty and inequality. The discussion first considers the available building blocks for producing a consumption aggregate in the POF and reviews some of the principles and issues that can guide decisions as to whether and how specific items should be included in the aggregate. The development of the argument points toward a few limitations in the way certain components of consumption are collected and raises some concerns with respect to the observed presence of extreme values in the data set.

Keywords:   welfare indicator, households, well-being, Brazil, consumption expenditures, inequality

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