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Poverty Lines and Spatial Differences in the Cost of Living

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  • Amendola,Nicola
  • Belotti,Federico
  • Edo,María
  • Marco Ranzani
  • Giovanni Vecchi

Abstract

This paper proposes a new method for estimating a full-coverage spatial price index using data typically available in household budget surveys. The food component of the index is estimated at the household level using reported expenditures and quantities, while the nonfood component is derived indirectly as a ratio among subnational poverty lines. The paper extends the analytical framework described in Deaton and Zaidi (2002) and discusses the advantages of this new methodology.

Suggested Citation

  • Amendola,Nicola & Belotti,Federico & Edo,María & Marco Ranzani & Giovanni Vecchi, 2024. "Poverty Lines and Spatial Differences in the Cost of Living," Policy Research Working Paper Series 10978, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10978
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    References listed on IDEAS

    as
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    3. Nicola Amendola & Giovanni Vecchi, 2022. "Durable goods and welfare measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1179-1211, September.
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    5. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773.
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