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Debates on the Measurement of Global Poverty$
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Sudhir Anand, Paul Segal, and Joseph E. Stiglitz

Print publication date: 2010

Print ISBN-13: 9780199558032

Published to Oxford Scholarship Online: May 2010

DOI: 10.1093/acprof:oso/9780199558032.001.0001

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A Note on the Mis(Use) of National Accounts for Estimation of Household Final Consumption Expenditures for Poverty Measures

A Note on the Mis(Use) of National Accounts for Estimation of Household Final Consumption Expenditures for Poverty Measures

Chapter:
(p.238) 9 A Note on the Mis(Use) of National Accounts for Estimation of Household Final Consumption Expenditures for Poverty Measures
Source:
Debates on the Measurement of Global Poverty
Author(s):

Ivo Havinga

Gisèle Kamanou

Vu Quang Viet

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199558032.003.0011

This chapter examines, from a global perspective, why poverty counts at different points in time generate marked and growing discrepancies when estimated from national accounts aggregated statistics (NA) as opposed to household surveys data (HS). It argues that NA and HS are not only designed to serve different purposes, but are fundamentally different in terms of statistical concepts and methods. The illustration of the NA concepts of ‘disposable income by individual household’ and ‘actual household final consumption’ indicates that the use of NA for poverty measurement is inadequate both conceptually and empirically. The chapter reiterates the importance of developing internationally harmonized standards for HS, seeking to accomplish improved poverty estimation as well as direct measure of household consumption in NA.

Keywords:   poverty measurement, household final consumption, harmonized household surveys, NA

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