The Welfare Impact of Price Changes on Household Welfare and Inequality 1999-2011
This paper attempts to use applied micro-economic research to understand the impact of price changes over the period 1999-2011 in Ireland. This measure combines an efficiency component using a Linear Expenditure System (LES) and an equity component using the Atkinson Index of Inequality. The efficiency component includes the behavioural response to price changes for non-subsistence expenditures thereby producing a Cost of Living Index. The Atkinson Index of Inequality produces an inequality measure and this is combined with the Cost of Living Index to produce an overall welfare measure. This extends upon the existing Irish literature on this issue by accounting for this broader set of components. The results show that changes in the cost of living have differed substantially between households both in terms of demographics and the position of the household in the income distribution and that behavioural response can potentially improve the welfare position of households in response to price changes in most years.
References listed on IDEAS
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.:
- Bart Hobijn & David Lagakos, 2005.
"Inflation Inequality In The United States,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 51(4), pages 581-606, December.
- Olivier Bargain & Olivier Donni & Monnet Gbakou, 2010.
"The Measurement of Child Costs: Evidence from Ireland,"
The Economic and Social Review,
Economic and Social Studies, vol. 41(1), pages 1-20.
- Bargain, Olivier & Donni, Olivier & Gbakou, Monnet Benoit Patrick, 2009. "The Measurement of Child Costs: Evidence from Ireland," IZA Discussion Papers 4672, Institute for the Study of Labor (IZA).
- Olivier Bargain & Monnet Gbakou & Olivier Donni, 2010. "The measurement of child costs : evidence from Ireland," Working Papers 201002, School of Economics, University College Dublin.
- Creedy, John & Dixon, Robert, 1998.
"The Relative Burden of Monopoly on Households with Different Incomes,"
London School of Economics and Political Science, vol. 65(258), pages 285-93, May.
- Creedy, J. & Dixon, R., 1995. "The Relative Burden of Monopoly on Households with Different Incomes," Department of Economics - Working Papers Series 477, The University of Melbourne.
- Roberts, Kevin, 1980.
"Price-independent welfare prescriptions,"
Journal of Public Economics,
Elsevier, vol. 13(3), pages 277-297, June.
- David (David Patrick) Madden, 2009. "Distributional characteristics for Ireland : a note," Working Papers 200910, School of Economics, University College Dublin.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Creedy, John, 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 373-83, December.
- King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
- Eithne Murphy & Eoghan Garvey, 2008. "The inadequacy of cost of living indices based on subjective preferences: an ethical and methodological critique," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(6), pages 745-754.
- John Creedy, 2001. "Indirect tax reform and the role of exemptions," Fiscal Studies, Institute for Fiscal Studies, vol. 22(4), pages 457-486., December.
- Christopher T. Whelan & Bertrand Maître, 2010. "Protecting the vulnerable: poverty and social exclusion in ireland as the economic crisis emerged," Working Papers 201023, Geary Institute, University College Dublin.
- Paolo Liberati, 2001. "The Distributional Effects of Indirect Tax Changes in Italy," International Tax and Public Finance, Springer, vol. 8(1), pages 27-51, January.
- William A. Barnett & Ousmane Seck, 2008. "Rotterdam model versus almost ideal demand system: will the best specification please stand up?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 795-824.
- Newbery, David M, 1995. "The Distributional Impact of Price Changes in Hungary and the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(431), pages 847-63, July.
When requesting a correction, please mention this item's handle: RePEc:eso:journl:v:43:y:2012:i:1:p:31-66. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Walsh)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.