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Publication types
Development economics

Consumption

Analysis of consumption decisions in developing countries has been a key part of EDePo research since its beginnings, and relies on high quality and detailed survey data on households' spending and consumption patterns.

One strand of this work investigates the impact on consumption of policy interventions such as the conditional cash transfer programmes in operation in Colombia (Familias en Accion) and Mexico (Oportunidades), maternal health programmes in Malawi, and insurance programmes in India. A key aim of such programmes is to raise the living standards of low income households, and in some cases, to shift consumption to more beneficial goods (such as nutritious food) and our research is therefore an important aspect of evaluating such effects of these policies.

Another strand of work focuses on a more fundamental understanding of households' consumption decision processes. For instance, how do prices, incomes and demographics affect spending patterns? To what extent do substitution possibilities ameliorate the welfare impacts of price rises? What can we learn about the relative power of partners in a couple from household spending patterns?

Research projects
This project evaluates evidence on the relationship between shocks to relative male wages, and changes in household consumption in Mexico during the 1990s decade, which is a period characterized by high volatility.
This project's ultimate aim is to estimate the impact of the recent rises in food prices on the welfare of poor families in rural Mexico.
In this project we study the shape of food Engel curves among the poor population targeted by a conditional cash transfer programme in Colombia, Familias en Acción. We show that in estimating Engel curves it is crucial to control for the endogeneity of total expenditure and for the (unobserved) variability of prices across towns.
In this project, we study expenditure patterns among poor households in rural Colombia.
We describe the structure of consumption of households in Mexico where large cash transfers have been made to women in households randomly selected from a poor population.