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The Application Of The Constant Price Method For Evaluating The Transfer Related To Inflation: The Case Of French Households

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  • Andre Babeau

Abstract

The constant price method is used here to evaluate transfers related to inflation either between households and other economic agents (essentially enterprises) or among groups of households defined by occupation, age class and so on. The results obtained are only fragmentary due to a lack of many pieces of information. The method requires in fact the splitting up of every value variation into a price component and a size component. Nevertheless, some interesting results are shown. In recent years, if the total productivity surplus has always been positive, the wealth surplus of households is sometimes positive, sometimes negative. Concerning the distribution of the productivity surplus among household groups, it has not been possible to find significant distortions, other than those which are related to differences in the propensity to save. On the contrary, marked distortions appear in the distribution of the wealth surplus due to wide differences in estate composition and indebtedness level.

Suggested Citation

  • Andre Babeau, 1978. "The Application Of The Constant Price Method For Evaluating The Transfer Related To Inflation: The Case Of French Households," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 24(4), pages 391-414, December.
    • Handle: RePEc:bla:revinw:v:24:y:1978:i:4:p:391-414
    DOI: 10.1111/j.1475-4991.1978.tb00066.x
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    Cited by:

    1. G. Garau & P. Lecca & L. Schirru, 2009. "Does deflation method matter for productivity measures?," Working Paper CRENoS 200901, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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