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An Estimation of CPI Biases in Argentina 1985-2005, and its Implications on Real Income Growth and Income Distribution

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  • Gluzmann, Pablo
  • Sturzenegger, Federico

Abstract

We use the shifts in Engel curves estimated from household surveys to estimate CPI biases in Argentina between 1985 and 2005. We find that real earning levels increased during this period between 4.3 and 5.7% faster per year than previously estimated. More surprisingly, relative to conventional wisdom, that income distribution has improved throughout this period.

Suggested Citation

  • Gluzmann, Pablo & Sturzenegger, Federico, 2010. "An Estimation of CPI Biases in Argentina 1985-2005, and its Implications on Real Income Growth and Income Distribution," MPRA Paper 42950, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42950
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    References listed on IDEAS

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    1. Diewert, W. Erwin & Greenlees, John & Hulten, Charles R. (ed.), 2010. "Price Index Concepts and Measurement," National Bureau of Economic Research Books, University of Chicago Press, number 9780226148557.
    2. Altimir, Oscar & González Rozada, Martín & Beccaría, Luis Alberto, 2002. "La distribución del ingreso en Argentina, 1974-2000," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    3. Mr. Irineu E de Carvalho Filho & Mr. Marcos Chamon, 2006. "The Myth of Post-Reform Income Stagnation in Brazil," IMF Working Papers 2006/275, International Monetary Fund.
    4. Dora L. Costa, 2001. "Estimating Real Income in the United States from 1888 to 1994: Correcting CPI Bias Using Engel Curves," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1288-1310, December.
    5. Yatchew, A., 1997. "An elementary estimator of the partial linear model," Economics Letters, Elsevier, vol. 57(2), pages 135-143, December.
    6. Filho, Irineu de Carvalho & Chamon, Marcos, 2012. "The myth of post-reform income stagnation: Evidence from Brazil and Mexico," Journal of Development Economics, Elsevier, vol. 97(2), pages 368-386.
    7. Bruce W. Hamilton, 2001. "Using Engel's Law to Estimate CPI Bias," American Economic Review, American Economic Association, vol. 91(3), pages 619-630, June.
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    More about this item

    Keywords

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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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