An Intertemporal Comparison of Income and Welfare for Two Mexican Regions
AbstractThis paper compares the evolution of income (GDP per capita) with utility derived welfare indices for two Mexican regions from 1992-2000. A methodology is proposed based on implicit true standard of living indices. Results show that welfare dynamics differed between regions and varied considerably compared to GDP per capita measures for the same period, thereby posing three questions: how well aggregate income measures reflect welfare, the role of CPI as a cost of living index, and the existence of different thresholds for wealth and welfare conditioned on development levels. This research reaffirms the importance of household preferences in evaluating welfare.
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Bibliographic InfoPaper provided by Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey in its series Working Papers with number 20062.
Length: 38 pages
Date of creation: Jul 2006
Date of revision: Jul 2006
Mexico; welfare; intertemporal comparison; income; CPI;
Find related papers by JEL classification:
- I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-28 (All new papers)
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