Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126291
Authors: 
Arndt, Channing
Jones, Sam
Salvucci, Vincenzo
Year of Publication: 
2015
Series/Report no.: 
WIDER Working Paper 2015/032
Abstract: 
Changes in relative prices of commodities consumed in different shares across income groups can be expected to alter real income differentials between these groups. Using Mozambican household budget survey and price data from 2002/03 and 2008/09, we show that once relative price increases are accounted for, inequality of real consumption increases substantially. We obtain this result by constructing a price deflator that reflects divergent price dynamics of different product categories. Since the main factors driving this result prevail in other developing countries, it is likely that inequality may be underestimated elsewhere.
Subjects: 
relative price changes
price index
income inequality
Mozambique
JEL: 
E31
D12
D31
O55
ISBN: 
978-92-9230-917-6
Document Type: 
Working Paper

Files in This Item:
File
Size
274.34 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.