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Has Inflation Hurt the Poor? Regional Analysis in the Philippines

Author

Listed:
  • Hyun H. Son

    (Principal Evaluation Specialist, Asian Development Bank, Philippines)

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.

Suggested Citation

  • Hyun H. Son, 2014. "Has Inflation Hurt the Poor? Regional Analysis in the Philippines," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 39-60, May.
    • Handle: RePEc:bap:journl:140204
    as

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    References listed on IDEAS

    as
    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. Easterly, William & Fischer, Stanley, 2001. "Inflation and the Poor," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 160-178, May.
    3. Hyun Son & Nanak Kakwani, 2009. "Measuring the impact of price changes on poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(4), pages 395-410, December.
    4. Arsenio Balisacan & Rosemarie Edillon, 2005. "Poverty Targeting in the Philippines," Chapters, in: John Weiss (ed.), Poverty Targeting in Asia, chapter 6, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Poverty reduction; Inflation; Economic growth; Poverty;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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