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Consumption and Income Aggregates

Most uses of household survey data require an aggregate measure of welfare. For a general discussion of the issues involved in building consumption and income aggregates, see Annex X in the LSMS Implementation Manual.  Deaton and Zaidi have written "Guidelines for Constructing Consumption Aggregates for Welfare Analysis" (LSMS Working Paper 135), which provides the principles that should be applied when constructing consumption aggregates from survey data.  Hentschel and Lanjouw provide more comparisons for Ecuador in "Constructing an Indicator of Consumption for the Analysis of Poverty : Principles and Illustrations with Reference to Ecuador."

The programs used to calculate the income and expenditures aggregates for the South Africa LSMS  and the Pakistan LSMS  are provided here. Any manipulation of the data requires that assumptions be made and, to the extent possible, those assumptions are explained in the programs provided. The consultants who constructed these aggregates have agreed to allow the distribution of the information with the understanding that the descriptions in the programs and the related Basic Information Documents are the only documentation that will be provided (available here).

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