Inflation Inequality and the Measurement of Pro-Poor Growth

Michael Grimm and Isabel Günther

No DT/2005/08, Working Papers from DIAL (Développement, Institutions et Mondialisation)

Abstract: The theoretical literature on pro-poor growth as well as its applications have not paid sufficient attention to the issue of varying inflation rates across the income distribution. Ignoring inflation inequality in pro-poor growth measurements can however severely bias assessments of pro-poor growth. Hence, we suggest simple methods which are able to redress such biases. As an empirical illustration we use the case of Burkina Faso and the growth incidence curve and poverty change decompositions as pro-poor growth measurements. _________________________________ La littérature théorique sur la croissance en faveur des pauvres ainsi que ses applications n'ont jusqu'à présent pas accordé suffisamment d'attention à l'aspect des variations des taux d'inflation au travers de la distribution des revenus. Ignorant l'inégalité de l'inflation dans les mesures de la croissance en faveur des pauvres peut cependant significativement biaiser l'analyse. Nous suggérons des méthodes appropriées simples pour redresser ce biais. Pour une illustration empirique, nous utilisons le cas du Burkina Faso ainsi que la courbe d'incidence de croissance et des décompositions des changements de pauvreté comme mesures de la croissance en faveur des pauvres.

Keywords: Poverty; Pro-poor Growth; Differential Inflation; Burkina Faso; Pauvreté; Croissance en faveur des pauvres; Inflation différentielle. (search for similar items in EconPapers)
JEL-codes: D12 D63 I32 O12 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2005-07
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Working Paper: Inflation Inequity and the Measurement of Pro-Poor Growth (2005)
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