This paper is concerned with the derivation of a welfare indicator for households from consumption data. It examines, illustrating with reference to data for ecuador, several of the steps involved in contructing consumption aggregates and highlights some of the principles which should guide the...

much new work has been devoted to deriving and extending decomposable inequality and poverty measures which bridge the gap between description and analysis by throwing light on the processes undergirding inquality and poverty. For example, an application that has obvious policy relevance in the...