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Determining the Caloric Content of Food Consumed away from Home : An Application to theConstruction of a Cost-of-Basic-Needs Poverty Line

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  • Himelein,Kristen

Abstract

Food purchased and consumed away from home is a growing share of household expenditure indeveloping countries. Therefore, measuring the monetary value and estimating the caloric equivalent of these mealsare increasingly important for the accurate calculation of a cost-of-basic-needs poverty line. The standard approach usesthe per-calorie cost of the food consumed at home to estimate the caloric equivalent of food purchased andconsumed away from home, but it does not include an allowance for the overhead or profit of the food seller.This paper retains the assumption of equal composition in the food baskets consumed inside and outside the home anduses data from a consumption experiment in the Marshall Islands to estimate a “multiplier” to increase theper-calorie cost to allow for these expenses. The methodology generates reasonable estimates of meal-specificand overall multipliers. Although the impact of their application is minimal in this case, it may be larger incontexts with higher shares of food purchased and consumed away from home in total consumption.

Suggested Citation

  • Himelein,Kristen, 2022. "Determining the Caloric Content of Food Consumed away from Home : An Application to theConstruction of a Cost-of-Basic-Needs Poverty Line," Policy Research Working Paper Series 10018, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10018
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