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Is inequality underestimated in Mozambique?: Accounting for underreported consumption

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  • Channing Arndt
  • Kristi Mahrt

Abstract

Household budget surveys in sub-Saharan Africa are designed to facilitate poverty measurement and may fail to fully capture consumption in wealthy households. As a result, inequality is likely underestimated. We address upper tier consumption underreporting by aligning consumption derived from Mozambican household surveys with national accounts. Consumption in categories most consumed by wealthy households is more frequently underreported, and therefore scaling household level consumption by category upwardly adjusts upper tier consumption.

Suggested Citation

  • Channing Arndt & Kristi Mahrt, 2017. "Is inequality underestimated in Mozambique?: Accounting for underreported consumption," WIDER Working Paper Series wp-2017-153, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-153
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    Cited by:

    1. Ricardo Santos & Eva-Maria Egger & Vincenzo Salvucci, 2021. "Horizontal and intersecting inequalities in Mozambique: 1997-2017," WIDER Working Paper Series wp-2021-106, World Institute for Development Economic Research (UNU-WIDER).
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    3. Carlos Gradín & Finn Tarp, 2019. "Investigating Growing Inequality in Mozambique," South African Journal of Economics, Economic Society of South Africa, vol. 87(2), pages 110-138, June.

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