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Category: Development

When Is a Dollar Not Really a Dollar?

When it’s measured in purchasing power parity. From a post on Owen Barder’s blog:

“If you have traveled in a developing country, you may have noticed that some things seem really cheap.  Perhaps that bus journey only cost you 10 cents, or you remember buying beer for 30 cents. It is easy to assume that the reason people can survive on a dollar a day is that a dollar goes further in developing countries.

Rising Food Prices: A Photo Essay

PBS’ NewsHour posted a link to a photo essay about how rising food prices have hit a small Indonesian town.

Looking at the last picture, I am reminded that it was Indo-Malays who left Indonesia around 1,000 CE, sailed around the Indian Ocean, and decided to colonize Madagascar. The meal that Indonesian family resembles many of the meals I have eaten in and around Ambatondrazaka in 2004, when conducting fieldwork for my dissertation.

(HT: World Food Programme, via Twitter.)

What’s a Household, And Why It Matters for Development

“Household definitions used in multi-topic household surveys vary between surveys but have potentially significant implications for household composition, production, and poverty statistics. Standard definitions of the household usually include some intersection of keywords relating to residency requirements, common food consumption, and intermingling of income or production decisions. Despite best practices intending to standardize the definition of the household, it is unclear which types of definitions or which intersections of keywords in a definition result in different household compositions. This paper conducts a randomized survey experiment of four different household definitions in Mali to examine the implications for household-level statistics. This approach permits analysis of the trade-offs between alternative definition types. We find that additional keywords in definitions increase rather than decreases household size and significantly alters household composition. Definitions emphasizing common consumption or joint production increase estimates of the levels of household assets and consumption statistics, but not on per adult equivalency asset and consumption statistics, relative to open-ended definitions of the household. In contrast, definition type did not affect production statistics in levels, though we observe significant differences in per adult equivalency terms. Our findings suggest that variations in household definition have implications for measuring household welfare and production.”