How Useful is CPI Price Data for Spatial Price Adjustment in Poverty Measurement?: A Case from Ghana

Xiaomeng Chen, Rose Mungai, Shohei Nakamura, Thomas Patrick Pearson, Ayago Esmubancha Wambile and Nobuo Yoshida

No 9388, Policy Research Working Paper Series from The World Bank

Abstract: Measuring and comparing the levels of household welfare and poverty in a country require cost-of-living differences across regions to be properly adjusted. In measuring the spatial cost of living, the recent literature underscores the importance of detailed product quality information in the price data. Taking advantage of the price data availability in Ghana, this case study explores the Consumer Price Index price data as a source for spatial price measurement. It applies the country product dummy method to the Consumer Price Index price data and compares the results with other methods based on different price data. The empirical analysis indicates a potential bias in estimating spatial prices stemming from the lack of product quality information and, therefore, suggests the potential usefulness of the Consumer Price Index price data for spatial price adjustment in poverty analysis in low- and middle-income countries.

Keywords: Municipal Management and Reform; Urban Housing; Urban Governance and Management; Urban Housing and Land Settlements; Inequality; Poverty Diagnostics; Poverty Lines; Poverty Assessment; Poverty Impact Evaluation; Small Area Estimation Poverty Mapping; Poverty Monitoring&Analysis; Macroeconomic Management; Food Security; Nutrition (search for similar items in EconPapers)
Date: 2020-09-08
New Economics Papers: this item is included in nep-ure
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