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Analysis and estimation of consumer expenditure and budget shares areimportant for understanding quantitatively the expenditure based behaviour ofthe people of a country or region. The costs attached with performing consumerexpenditure and budget shares survey are significant. These surveys are quitetime consuming and even a slight increase in sample size could lead to asignificant increase in the cost of the survey under the current structure.This high cost for the survey also reduces its flexibility. Hence it is ofparamount importance to be able to provide a statistically sound and relativelycheaper facilitation method of survey to be able to understand the consumptionexpenditure distribution of a country or a region without much loss ofinferential power. In the context of the Indian National Sample Survey, in thispaper we perform analysis and estimation of consumer expenditure assuminguniform prices across First Stage Units (FSUs) of a sampling design, and checkits feasibility in estimating the consumer expenditure distribution of thecountry. We also compare it with the existing methodology and infer that thereis no significant loss of information in the estimated consumer expendituredistribution and other inferences like the Lorenz curve and the Gini Index,when uniform distribution of prices within any FSU is assumed.

Analysis and Estimation of Consumer Expenditure assuming uniform prices across FSUs: A step towards cost effectiveness