NAS-NSS Estimates of Private Consumption for Poverty Estimation

Drawing on a joint CSO-NSSO exercise at cross-validation of NAS and NSS, this paper details weaknesses of both types of estimates, but shows that NAS cannot be accepted as a more reliable yardstick for either aggregate consumption expenditure or that on specific commodity groups. This is due to the inherent fluidity’ of NAS estimates, weaknesses in their underlying database, and the fragility of the rates, ratios and norms used in the commodity- flow balance underpinning the PFCE. Despite its shortcomings, it is argued that NSS is preferable because it is based on direct observations relating to the survey period and because, unlike NAS, it avoids recourse to adjustments based on arbitrary assumptions.