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Cooking gas, sold by the bottle, is imported in order to satisfy domestic demand at the subsidized price. It would not be correct to evaluate the actual consumption of cooking gas (where this is available in the data) at the true economic, or international, price. Doing this we would implicitly assume that consumers would not change their demand behaviour if faced with the (three times) higher price. Such an assumption is highly unrealistic, and might have a bearing on the overall household ranking obtained with the full consumption aggregate.

80Grosh, The Household Survey as a Tool for Policy Change: Lessons from the Jamaican Survey of Living ConditionsNo. 81Deaton and Paxson, Patterns of Aging in Thailand and Côte d'IvoireNo. 82Ravallion, Does Undernutrition Respond to Incomes and Prices? Dominance Tests for IndonesiaNo. 83Ravallion and Datt, Growth and Redistribution Components of Changes in Poverty Measure: A Decomposition with Applications to Brazil and India in the 1980sNo. 84Vijverberg, Measuring Income from Family Enterprises with Household Surveys(List continues on the inside back cover) Page i Constructing an Indicator fo Consumption for the Analysis of Poverty Page ii The Living Standards Measurement Study The Living Standards Measurement Study (LSMS) was established by the World Bank in 1980 to explore ways of improving the type and quality of household data collected by statistical offices in developing countries.

17. This assumes that respondents give total age even if the goods were purchased second-hand. Page 16 IV. Cost of Living Adjustments: Inflation and Spatial Variation of Prices Inflation Adjustment Typically, household surveys record expenditures for different items with varying recall periods. The shortest recall period in the Ecuador survey is applied to food items (two weeks), a slightly longer one to expenditures on services or some non-food expenditures like candles, and an even longer period to only periodic purchases such as clothing.

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