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Durable goods and poverty measurement

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  • Amendola, Nicola
  • Vecchi, Giovanni

Abstract

The paper focuses on durable goods and their role in the measurement of living standards. The paper reviews the theoretical underpinnings of the methods available to estimate the value of the services flowing from consumer durable goods. It also provides a unified framework that encompasses the acquisition approach, the rental equivalent approach, and the user cost approach. The pros and cons of each method are discussed in the context of poverty and inequality analysis and it is argued that the user cost should receive the highest consideration.

Suggested Citation

  • Amendola, Nicola & Vecchi, Giovanni, 2014. "Durable goods and poverty measurement," Policy Research Working Paper Series 7105, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7105
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    References listed on IDEAS

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    6. Thesia I. Garner & Randal Verbrugge, 2007. "Puzzling Divergence of U.S. Rents and User Costs, 1980-2004: Summary and Extensions," Working Papers 409, U.S. Bureau of Labor Statistics.
    7. W. Erwin Diewert, 2009. "Durables and Owner-Occupied Housing in a Consumer Price Index," NBER Chapters, in: Price Index Concepts and Measurement, pages 445-500, National Bureau of Economic Research, Inc.
    8. Jukka Jalava & Ilja Kristian Kavonius, 2009. "Measuring The Stock Of Consumer Durables And Its Implications For Euro Area Savings Ratios," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 43-56, March.
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    Cited by:

    1. Andrea Brandolini & John Micklewright, 2023. "Measuring global poverty," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 6, pages 60-69, Edward Elgar Publishing.
    2. John Chiwuzulum Odozi & Ruth Uwaifo Oyelere, 2023. "Evolution of Inequality in Nigeria: a Tale of Falling Inequality, Rising Poverty, and Regional Heterogeneity," Journal of Economics, Race, and Policy, Springer, vol. 6(4), pages 297-309, December.
    3. Marta Dziechciarz–Duda, 2023. "Income Expectations in Sustainability of Subjective Perception of Households’ Wellbeing," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    4. Pape,Utz Johann & Parisotto,Luca, 2019. "Estimating Poverty in a Fragile Context -- The High Frequency Survey in South Sudan," Policy Research Working Paper Series 8722, The World Bank.
    5. Andrea Brandolini & John Micklewright, 2020. "Tony Atkinson’s new book, Measuring Poverty Around the World. Some further reflections," Working Papers 518, ECINEQ, Society for the Study of Economic Inequality.

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    Keywords

    Debt Markets; Economic Theory&Research; Markets and Market Access; Investment and Investment Climate; Access to Markets;
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