Large devaluations and inflation inequality: Replicating Cravino and Levchenko (2017) with evidence from Brazil

Raphael Gouvêa

Journal of Applied Econometrics, 2022, vol. 37, issue 3, 657-664

Abstract: In the aftermath of large devaluations, prices of tradable goods/lower‐priced varieties increase significantly more than the prices of nontradables/higher‐priced varieties. These relative price changes may lead to inflation inequality when household consumption baskets are different across the distribution of income. Using Cravino and Levchenko's (2017, https://doi.org/10.1257/aer.20151551) methodology, we show that inflation of poor households in Brazil was at least 11 percentage points higher than that of the rich in the aftermath of the 2002 large devaluation. A detailed case study of the City of São Paulo estimates an inflation inequality ranging from 8 to 11 percentage points in the city.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/jae.2880

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:japmet:v:37:y:2022:i:3:p:657-664

Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252

Access Statistics for this article

Journal of Applied Econometrics is currently edited by M. Hashem Pesaran

More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().