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

  • Hyun H. Son

    ()

    (International Poverty Centre)

  • Nanak Kakwani

    ()

    (International Poverty Centre)

Registered author(s):

    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 Function: First version, 2006
    Download Restriction: no

    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
    Contact details of provider: Web page: http://www.ipc-undp.org
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    1. Michael J. Boskin, 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.
    2. Pollak, Robert A, 1980. "Group Cost-of-Living Indexes," American Economic Review, American Economic Association, vol. 70(2), pages 273-78, May.
    3. Kakwani, Nanak C, 1977. "Applications of Lorenz Curves in Economic Analysis," Econometrica, Econometric Society, vol. 45(3), pages 719-27, April.
    4. 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.
    5. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    6. Pollak, Robert A., 1981. "The social cost of living index," Journal of Public Economics, Elsevier, vol. 15(3), pages 311-336, June.
    7. Robert A. Pollak, 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.
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