Very few demographic surveys in developing countries have gathered information on household incomes or consumption expenditures. Researchers interested in living standards therefore have had little alternative but to rely on simple proxy indicators. The properties of these proxies have not been analyzed systematically. We ask what hypotheses can be tested using proxies, and compare these indicators with consumption expenditures per adult, our preferred measure of living standards. We find that the proxies employed in much demographic research are very weak predictors of consumption per adult. Nevertheless, hypothesis tests based on proxies are likely to be powerful enough to warrant consideration.

This paper investigates the effect of health-related expenditure on household welfare in Albania, Bosnia and Herzegovina, Montenegro, Serbia and Kosovo, all of which have undertaken major health sector reform. Two methodologies are used: (i) the incidence and intensity of 'catastrophic' health care expenditure, and (ii) the effect of out-of-pocket payments on poverty headcount and poverty gap measures. Data are drawn from the most recent Living Standards and Measurement Surveys, 2000-05. While our analyses are not without their limitations, and the lack of comparability across instruments precludes a direct comparison across countries, there is no doubt that health expenditure contributes substantially to the impoverishment of households-increasing the incidence of poverty and pushing poor households into deeper poverty-in each country. Both the catastrophic and the impoverishing effects of health expenditures are particularly severe in Albania and Kosovo. Transportation expenditure accounts for a large share of total health expenditures, especially in Albania and Serbia. Informal payments are substantial in all countries, and are particularly high in Albania. As countries in the sub-region continue the process of health system reform, an important policy question should be how to protect vulnerable groups from the catastrophic and impoverishing effects of health care expenditure.

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Levels of child malnutrition in India have fallen only slowly during the 1990s, despite significant economic growth and considerable expenditure on the Integrated Child Development Services (ICDS) programme, of which the major component is supplementary feeding for malnourished children. To begin to unravel this puzzle, this article assesses the programme's placement and its outcomes, using NFHS data from 1992 and 1998. The authors find that programme placement is clearly regressive across states. The states with the greatest need for the programme — the poor Northern states which account for nearly half of India's population and which suffer from high levels of child malnutrition — have the lowest programme coverage and the lowest budgetary allocations from the central government. Programme placement within states is more progressive: poorer and larger villages have a higher probability of having an ICDS centre, as do those with other development programmes or community associations. In terms of outcomes, the authors find little evidence of programme impact on child nutrition status in villages with ICDS centres.