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Impacts of the Indonesian Economic Crisis: Price Changes and the Poor

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Author Info
James Levinsohn
Steven Berry
Jed Friedman

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Abstract

The recent financial crisis in Indonesia has resulted in dramatic price increases. Using very recent data, we investigate whether these price increases have impacted the cost-of-living of poor households in a disproportionately harsh way. We find that the poor have indeed been hit hardest. Just how hard the poor have been hit, though, depends crucially on where the household lives, whether the household is in a rural or urban area, and just how the cost-of-living index is computed. What is clear is that the notion that the very poor are so poor as to be insulated from international shocks is simply wrong. Rather, in the Indonesian case, the very poor appear the most vulnerable.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7194.

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Date of creation: Jun 1999
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Handle: RePEc:nbr:nberwo:7194

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  1. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-30, June. [Downloadable!] (restricted)
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  2. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March. [Downloadable!] (restricted)
  3. Chaudhuri, Shubham & Ravallion, Martin, 1994. "How well do static indicators identify the chronically poor?," Journal of Public Economics, Elsevier, vol. 53(3), pages 367-394, March. [Downloadable!] (restricted)
  4. Benu Bidani & Martin Ravallion, 1993. "A Regional Poverty Profile for Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 29(3), pages 37-68, December. [Downloadable!] (restricted)
  5. Jessica Poppele & Sudarno Sumarto & Lant Pritchett, 1998. "Social Impacts of the Indonesian Crisis - New Data and Policy Implications," Development Economics Working Papers 81, East Asian Bureau of Economic Research. [Downloadable!]
  6. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
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  1. Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A 'Rapid Response' Methodology," Working Papers 482, Research Seminar in International Economics, University of Michigan. [Downloadable!]
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  2. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, 2005. "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Development Economics Working Papers 525, East Asian Bureau of Economic Research. [Downloadable!]
  3. Yose Rizal Damuri & Ari A. Perdana, 2003. "The Impact of Fiscal Policy on Income Distribution and Poverty: A Computable General Equilibrium Approach for Indonesia," CSIS Economics Working Paper Series WPE068, Centre for Strategic and International Studies, Jakarta, Indonesia. [Downloadable!]
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  4. James P. Smith & Duncan Thomas & Elizabeth Frankenberg & Kathleen Beegle, 2000. "Wages, Employment and Economic Shocks: Evidence from Indonesia," Working Papers 00-07, RAND Corporation Publications Department. [Downloadable!]
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  5. PIERRE-RICHARD AGÉNOR, 2002. "Business Cycles, Economic Crises, and the Poor," Journal of Policy Reform, Taylor and Francis Journals, vol. 5(3), pages 145-160, September. [Downloadable!] (restricted)
  6. Jesse Darja & Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, 2004. "The State of Village-Level Infrastructures and Public Services in Indonesia During the Economic Crisis," Development Economics Working Papers 524, East Asian Bureau of Economic Research. [Downloadable!]
  7. Philip Arestis, Asena Caner, 2004. "Financial Liberalization and Poverty: Channels of Influence," Economics Working Paper Archive 411, Levy Economics Institute, The. [Downloadable!]
  8. Honohan, Patrick, 2005. "Bankingsector crises and inequality," Policy Research Working Paper Series 3659, The World Bank. [Downloadable!]
  9. Giovanni Andrea Cornia, 2003. "The Impact of Liberalisation and Globalisation on Income Inequality in Developing and Transitional Economies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  10. Agenor, Pierre-Richard, 2001. "Business cycles, economic crises, and the poor : testing for asymmetric effects," Policy Research Working Paper Series 2700, The World Bank. [Downloadable!]
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