IDEAS home Printed from https://ideas.repec.org/p/siu/wpaper/06-2011.html
   My bibliography  Save this paper

Decomposing the Changes of the Divisia Price Index: Application to Inflation in the Philippines

Author

Listed:
  • Tomoki Fujii

    () (School of Economics, Singapore Management University)

Abstract

We propose a method to decompose the logarithmic change of the Divisia price index into the pure price effect, the prefernce effect and the substitution effect. Our empirical results in the Philippines shows the effects of preference change on the Divisia price index are heterogeneous but positive across all regions and income deciles. However, they are dominated by the pure price effect.

Suggested Citation

  • Tomoki Fujii, 2011. "Decomposing the Changes of the Divisia Price Index: Application to Inflation in the Philippines," Working Papers 06-2011, Singapore Management University, School of Economics.
  • Handle: RePEc:siu:wpaper:06-2011
    as

    Download full text from publisher

    File URL: https://mercury.smu.edu.sg/rsrchpubupload/18652/divisia_06-2011.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fujii, Tomoki, 2013. "Impact of food inflation on poverty in the Philippines," Food Policy, Elsevier, vol. 39(C), pages 13-27.

    More about this item

    Keywords

    Divisia price index; preference change; decomposition; Philippines;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:siu:wpaper:06-2011. 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: (QL THor). General contact details of provider: http://edirc.repec.org/data/sesmusg.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.