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Has Inflation Hurt the Poor? Regional Analysis in the Philippines

Author

Listed:
  • Son, Hyun

    (Asian Development Bank)

Abstract

This paper measures the impact of price changes on poverty using the Philippines as an example. The impact of price changes is captured by the price elasticity of poverty for three widely used poverty measures, namely, headcount ratio, poverty gap ratio, and severity of poverty. An empirically operational price index called the price index for the poor is developed, which indicates whether the price changes hurt the poor relatively more than the non-poor. Furthermore, the paper develops formulae for aggregating regional price indices into the national price indices. The results show that since 2003, prices increases have led to greater suffering for the poor, particularly the ultra poor.

Suggested Citation

  • Son, Hyun, 2008. "Has Inflation Hurt the Poor? Regional Analysis in the Philippines," ADB Economics Working Paper Series 112, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0112
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    More about this item

    Keywords

    impact; Philippines; poverty; price changes; price index for the poor;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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