@TechReport{iza:izadps:dp13222, author={Battistin, Erich and Nadai, Michele De and Krishnan, Nandini}, title={The Insights and Illusions of Consumption Measurements}, year={2020}, month={May}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={13222}, url={https://www.iza.org/publications/dp13222}, abstract={While household well-being derives from long-term average rates of consumption, welfare comparisons typically rely on shorter-duration survey measurements. We develop a new strategy to identify the distribution of these long-term rates by leveraging a large-scale randomization in Iraq that elicited repeated short-duration measurements from diaries and recall questions. Identification stems from diary-recall differences in reports from the same household, does not require reports to be error-free, and hinges on a research design with broad replicability. Our strategy delivers practical and costeffective suggestions for designing survey modules to yield the closest measurements of consumption well-being. In addition, we find little empirical support for the claim that acquisition diaries yield the most accurate measurement of poverty and inequality and offer new insights to interpret and reconcile diary-recall differences in household surveys.}, keywords={modes of data collection;measurement of inequality and poverty;household surveys}, }