The measurement of household welfare is one of the most compelling
yet demanding areas in economics. To place the analysis of
inequality and poverty within an economic framework where
individuals are making decisions about current and lifetime incomes
and expenditures is a difficult task, made all the more challenging
by the complexity of the decision-making process in which
households are involved and the variety of constraints they face.
This 1994 book examines the conceptual and practical difficulties
of making inferences from observed behaviour. It addresses the
problems of making comparisons across a range of very different
households and discusses how data for such comparisons should be
collected. The contributions, from experts from Europe, North
America and Australia, have the unifying theme that there is a
strong relationship between theoretical concepts from
microeconomics and the appropriate use of micro data in evaluating
household welfare.
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