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Simulating the effect on households' real consumption and poverty of the increase in prices that followed the 2015-16 economic crisis in Mozambique

Author

Listed:
  • Félix Mambo
  • Yonesse Paris
  • Vincenzo Salvucci
  • Ricardo Santos

Abstract

Poverty declined substantially in Mozambique between 1996/97 and 2014/15. However, the recent economic crisis, characterized by a significant increase in domestic prices, may have dragged several households into poverty. Using consumer price index and 2014/15 household budged survey data, we calculate that the cost of purchasing a basic basket may have risen between 55 per cent and 70 per cent in the period 2014-2016, and we simulate the impact of the rise in prices on households' real consumption and poverty rate.

Suggested Citation

  • Félix Mambo & Yonesse Paris & Vincenzo Salvucci & Ricardo Santos, 2018. "Simulating the effect on households' real consumption and poverty of the increase in prices that followed the 2015-16 economic crisis in Mozambique," WIDER Working Paper Series wp-2018-61, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-61
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    References listed on IDEAS

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    Cited by:

    1. Ricardo Santos & Eva-Maria Egger & Vincenzo Salvucci, 2021. "Horizontal and intersecting inequalities in Mozambique: 1997-2017," WIDER Working Paper Series wp-2021-106, World Institute for Development Economic Research (UNU-WIDER).
    2. Vincenzo Salvucci & Finn Tarp, 2021. "Poverty and vulnerability in Mozambique: An analysis of dynamics and correlates in light of the Covid‐19 crisis using synthetic panels," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1895-1918, November.
    3. Eva-Maria Egger & Vincenzo Salvucci & Finn Tarp, 2023. "Evolution of Multidimensional Poverty in Crisis-Ridden Mozambique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 485-519, April.

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