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The Distributional Welfare Effects of Rising Prices in the United States: The 1970's Experience

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  • Stoker, Thomas M

Abstract

This paper presents estimates of the distributional welfare impacts ofthe actual price rises of energy and nonenergy commodities during the1970-80 decade in the United States. Measures of welfare changes basedon net compensating variations are computed for families that differ with respect to demographic characteristics, initial total expenditurelevels, and total expenditure growth profiles over the decade. For comparison, measures of welfare change based solely on the changes inenergy prices are computed. The author shows that welfare differencesdue to initial expenditure levels or demographic profiles are minor incomparison to welfare differences due to different expenditure growthprofiles. Copyright 1986 by American Economic Association.

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  • Stoker, Thomas M, 1986. "The Distributional Welfare Effects of Rising Prices in the United States: The 1970's Experience," American Economic Review, American Economic Association, vol. 76(3), pages 335-349, June.
    • Handle: RePEc:aea:aecrev:v:76:y:1986:i:3:p:335-49
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    Cited by:

    1. John Creedy, 1998. "The Welfare Effect on Different Income Groups of Indirect Tax Changes and Inflation in New Zealand," The Economic Record, The Economic Society of Australia, vol. 74(227), pages 373-383, December.

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