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Why Differences in Household Expenditure Estimates Matter

dc.contributor.authorJose Ramon G. Albert
dc.contributor.authorRonina D. Asis
dc.contributor.authorJana Flor V. Vizmanos
dc.description.abstractGovernment estimates on average household spending can be obtained from two sources: sample surveys, such as the Family Income and Expenditure Survey (FIES), and national accounts data. The typical estimate is the household final consumption expenditure (HFCE) estimate from national accounts which is more timely, as it is released quarterly, than survey estimates, which are triennial. Estimates between sample surveys and national accounts have wide discrepancies across time, with their divergence generally growing. However, this scenario is not unique to the Philippines (Karshenas 2003). In India, the Committee on Private Final Consumption Expenditure of the Central Statistics Office (2015) revealed that the discrepancy in Indian estimates had increased from 5 percent in 1972–1973 to 45 percent in 2011–2012 (also see Minhas 1988; Sundaram and Tendulkar 2003; and Deaton and Kozel 2005). Often, survey-based estimates are lower (Ravallion 2003; Deaton 2005). Such discrepancies have consequences to policy. For instance, poverty can be overestimated if survey-based estimates are biased downward. As a result, resources for poverty reduction will go to those who do not need them. Meanwhile, underreporting from wealthy households in surveys also underestimate income inequality. This Policy Note describes this issue in detail, looking at how estimates are derived and other related issues.
dc.publisherPhilippine Institute for Development Studies
dc.titleWhy Differences in Household Expenditure Estimates Matter
dc.typePolicy Notes
dc.subject.expertDevelopment Indicators
dc.subject.expertEnvironmental Indicators
dc.subject.expertEconomic Indicators
dc.subject.expertEducational Indicators
dc.subject.expertDemographic Indicators
dc.subject.expertHealth Indicators
dc.subject.expertDisadvantaged Groups
dc.subject.expertLow Income Groups
dc.subject.expertSocially Disadvantaged Children
dc.subject.expertRural Conditions
dc.subject.expertRural Development
dc.subject.expertSocial Conditions
dc.subject.expertUrban Development
dc.subject.expertUrban Sociology
dc.subject.expertProject finance
dc.subject.expertResources evaluation
dc.subject.expertNeeds assessment
dc.subject.expertCost benefit analysis
dc.subject.adbAlleviating Poverty
dc.subject.adbExtreme Poverty
dc.subject.adbFight Against Poverty
dc.subject.adbGlobal Poverty
dc.subject.adbHealth Aspects Of Poverty
dc.subject.adbIndicators Of Poverty
dc.subject.adbParticipatory Poverty Assessment
dc.subject.adbPoverty Eradication
dc.subject.adbPoverty Analysis
dc.subject.adbPoverty In Developing Countries
dc.subject.adbPoverty Reduction Efforts
dc.subject.adbUrban Poverty
dc.subject.adbResults-Based Monitoring And Evaluation
dc.subject.adbProject Evaluation & Review Technique
dc.subject.adbPerformance Evaluation
dc.subject.adbImpact Evaluation Reports
dc.subject.adbEvaluation Criteria
dc.subject.naturalEconomic forecasting
dc.subject.naturalHealth expectancy
dc.subject.naturalSocial groups
dc.subject.naturalPolitical participation
dc.subject.naturalDistribution of income
dc.subject.naturalInequality of income
dc.subject.naturalDeveloping countries
dc.subject.naturalRural community development
dc.subject.naturalMass society
dc.subject.naturalSocial change
dc.subject.naturalSocial policy
dc.subject.naturalSocial stability
dc.subject.naturalSustainable development
dc.subject.naturalUrban policy
dc.subject.naturalUrban renewal
dc.subject.naturalResults mapping
dc.subject.naturalRisk assessment
dc.subject.naturalParticipatory monitoring and evaluation
dc.subject.naturalCost effectiveness
dc.title.seriesPIDS: Policy Notes
dc.title.volumeNo. 2017-06 (Febuary 2017)
dc.contributor.imprintPhilippine Institute for Development Studies
oar.adminregionSoutheast Asia Region
oar.authorAlbert, Jose Ramon G.
oar.authorAsis, Ronina D.
oar.authorVizmanos, Jana Flor V.

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