Has Inflation Hurt the Poor? Regional Analysis in the Philippines

Hyun H. Son ()
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Hyun H. Son: Principal Evaluation Specialist, Asian Development Bank, Philippines

Review of Economics & Finance, 2014, vol. 4, 39-60

Abstract: This paper measures the impact of price changes on poverty using the Philippines as an example. The impact of price changes is captured by the price elasticity of poverty for three widely used poverty measures, namely, headcount ratio, poverty gap ratio, and severity of poverty. An empirically operational price index called the price index for the poor is developed, which indicates whether the price changes hurt the poor relatively more than the nonpoor. Furthermore, the paper develops formulae for aggregating regional price indices into the national price indices. The results show that since 2003, price increases have led to greater suffering for the poor, particularly the ultra poor.

Keywords: Poverty reduction; Inflation; Economic growth; Poverty (search for similar items in EconPapers)
JEL-codes: E31 I32 P36 P46 (search for similar items in EconPapers)
Date: 2014
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