Has Inflation Hurt the Poor? Regional Analysis in the Philippines

Hyun Son ()
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Hyun Son: Asian Development Bank

No 112, ADB Economics Working Paper Series from Asian Development Bank

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 non-poor. Furthermore, the paper develops formulae for aggregating regional price indices into the national price indices. The results show that since 2003, prices increases have led to greater suffering for the poor, particularly the ultra poor.

Keywords: impact; Philippines; poverty; price changes; price index for the poor (search for similar items in EconPapers)
JEL-codes: I32 O12 O53 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2008-05-01
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0112

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