When do Relative Prices Matter for Measuring Income Inequality?: The Case of Food Prices in Mozambique

Channing Arndt, Sam Jones and Vincenzo Salvucci

No wp-2015-032, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Equality and inequality; Income distribution; Index numbers (Economics); Prices (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (24)

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Related works:
Journal Article: When do relative prices matter for measuring income inequality? The case of food prices in Mozambique (2015)
Working Paper: When do Relative Prices Matter for Measuring Income Inequality?: The Case of Food Prices in Mozambique (2014)
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