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Measuring the impact of prices on inequality: with applications to Thailand and Korea

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Author Info
Hyun H. Son () (International Poverty Centre)
Nanak Kakwani () (International Poverty Centre)
Abstract

This paper develops a new methodology to compute social cost of living indices. These indices indicate whether or not price changes have a favourable (or unfavourable) impact on the welfare of the poor. The indices are derived on the basis of two alternative classes of social welfare functions. The methodology developed in the paper is applied to compute social cost of living indices for Thailand and Korea. The empirical results show that changes in prices have generally affected the poor more adversely than the non-poor.

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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper11.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 11.

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Length: 29
Date of creation: Jan 2006
Date of revision:
Publication status: Published by UNDP - International Poverty Centre, January 2006, pages 1-29
Handle: RePEc:ipc:wpaper:11

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Related research
Keywords: Social Cost of Living; Democratic and Plutocratic costs of living indices; Social expenditure function; Social budget shares; Atkinson?s inequality;

Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-93, September. [Downloadable!] (restricted)
  2. Pollak, Robert A, 1998. "The Consumer Price Index: A Research Agenda and Three Proposals," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 69-78, Winter. [Downloadable!] (restricted)
  3. Boskin, Michael J, et al, 1998. "Consumer Prices, the Consumer Price Index, and the Cost of Living," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 3-26, Winter. [Downloadable!] (restricted)
  4. Silber, Jacques, 1986. "Variability in the Experienced Rates of Inflation and Price Index Linkage to Social Welfare," Applied Economics, Taylor and Francis Journals, vol. 18(1), pages 49-58, January.
  5. Diewert, Erwin, 2007. "Index Numbers," UBC Departmental Archives diewert-07-01-03-08-17-23, UBC Department of Economics, revised 31 Jan 2007. [Downloadable!]
  6. Kakwani, Nanak C, 1977. "Applications of Lorenz Curves in Economic Analysis," Econometrica, Econometric Society, vol. 45(3), pages 719-27, April. [Downloadable!] (restricted)
  7. Pollak, Robert A., 1981. "The social cost of living index," Journal of Public Economics, Elsevier, vol. 15(3), pages 311-336, June. [Downloadable!] (restricted)
  8. Pollak, Robert A, 1980. "Group Cost-of-Living Indexes," American Economic Review, American Economic Association, vol. 70(2), pages 273-78, May. [Downloadable!] (restricted)
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