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Prices for poverty analysis in Africa

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  • Gaddis,Isis

Abstract

Measuring poverty requires adjusting nominal consumption (or income) into a real value of consumption, across geographic areas and over time. To this end, data on consumer prices are used to construct a price index. There are a range of approaches to do this, from using the consumer price index, to survey-based unit values, which differ in the underlying sources of price data and methodologies for indexing. These different approaches can have large impacts on poverty measures and trends. Surprisingly little attention has been focused on this topic. This study reviews a range of issues and the evidence on how prices matter for measuring poverty, particularly in Africa. It draws on a wide literature, much from developed countries, and offers suggestions for future work in this area.

Suggested Citation

  • Gaddis,Isis, 2016. "Prices for poverty analysis in Africa," Policy Research Working Paper Series 7652, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7652
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    References listed on IDEAS

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    Cited by:

    1. Nakamura,Shohei & Harati,Rawaa & Lall,Somik V. & Dikhanov,Yuri M. & Hamadeh,Nada & Vigil Oliver,William & Rissanen,Marko Olavi & Yamanaka,Mizuki, 2016. "Is living in African cities expensive ?," Policy Research Working Paper Series 7641, The World Bank.
    2. Ayca Donmez & Gloria Solano-Hermosilla & Vladimir Bougay & Balaji Subbaraman & Robert M'barek & Abdoulaye Adam & Stephen Bahemuka & Oliver J. M. Chinganya & Vladimir Eskin & Koua Louis Kouakou & Charl, 2017. "Using web and mobile phone technologies to collect food market prices in Africa. Approaching real-time data and use of crowdsourcing, 2013 - 2016," JRC Working Papers JRC104311, Joint Research Centre (Seville site).
    3. Leandro De Magalhães & Dongya Koh & Raül Santaeulàlia-Llopis, 2016. "Consumption and Expenditure in Sub-Saharan Africa," Bristol Economics Discussion Papers 16/677, Department of Economics, University of Bristol, UK, revised 07 Oct 2016.
    4. Leandro Magalhaes & Dongya Koh & Raül Santaeulàlia-Llopis, 2016. "The Costs of Consumption Smoothing: Less Schooling and Less Nutrition," Working Papers 939, Barcelona Graduate School of Economics.

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