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

Félix Mambo, Yonesse Paris, Vincenzo Salvucci and Ricardo Santos

No wp-2018-61, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Price increase; Economic crisis; Poverty; Simulation (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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