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МОНГОЛЫН ХҮН АМЫН СЭТГҮҮЛ Дугаар (367) 20, 2011

64

much of those foods are consumed, good

estimates of the demand system parameters

for food can be used, by applying food-to-

nutrient conversion factors (as sited in Pitt,

1983; Strauss, 1984). I use a food composition

table compiled by the Ministry of Health of

Mongolia in 2008 that contains information

on the nutrient content per 100 grams of

all the major food items in Mongolia to

convert the quantity consumed of each of the

hundred food items by each household into

its equivalent content of calories, protein,

fat and carbohydrates. Tobacco and residual

categories are excluded from this calculation.

It means household nutrient intake

HNUT

is

computed through the formula:

Nj Fij

HNUTi

n

j

=

=

1

Where:

Fij

is the weight in 100 grams of

the average daily intake of food item j by

household i.

jN

is the standard measure of nutrient found in

each type of food item

jF

.

A total number of food items is n=100.

Then per capita nutrient consumption is

estimated converting household nutrient

consumption to per capita using equivalent

adult ratio.

ADEi

HNUTi

NUTi

=

Finally, calorie of meals eaten outside the

household is added to this calculation in order

to estimate total calorie income at household

level. For that I use average price of calorie

at household level and average expenditure of

meals eaten outside.

Per capita consumption

:

Creating

consumption

aggregate

is guided by theoretical and practical

considerations. First, it must be as

comprehensive as possible given the available

information. Omitting some components

assumes that they do not contribute to people’s

welfare or that they do no affect the rankings

of individuals. Second, market and non-market

transactions are to be included, which means

that purchases are not the sole component

of the indicator. Third, expenditure is not

consumption. For perishable goods, mostly

food, it is usual to assume that all purchases

are consumed. But for other goods and

services, such as housing or durable goods,

corrections have to be made. Lastly, the

consumption aggregate comprises five main

components: food, non-food, housing, durable

goods and energy.

As in the case of food, non-food consumption

and energy consumption is a simple and

straightforward calculation. Again, all possible

sources of consumption is included

25

and

normalized to a common reference period.

However, for those components as housing and

durable goods there is more imputations were

employed.

Durable goods:

Ownership of durable goods

could be an important component of the

welfare of the households. Given that these

goods last typically for many years, the

expenditure on purchases is not the proper

indicator to consider. The right measure to

estimate, for consumption purposes, is the

stream of services that households derive from

all durable goods in their possession over the

relevant reference period. This flow of utility

is unobservable but it can be assumed to be

proportional to the value of the good. A usual

procedure involves calculating depreciation

rates for each type of good based on their

current value and age, which in this case is

provided by the HSES along with the number

of durables owned by the household. Shortly,

the stream of consumption is computed by

multiplying the estimated value of the good

a year ago times its depreciation rate, and

aggregating these amounts by household.

Housing:

Housing conditions are considered

an essential part of people’s living standards.

25

Self produced and in-kind consumption is included.