IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v5y1998i10p639-644.html
   My bibliography  Save this article

Analysing the effects of price changes on the cost of living of consumers using true indices

Author

Listed:
  • Jose Alberto Molina

Abstract

In this paper we analyse the effects of price changes on consumers' cost of living, using true indices for Germany, France, the UK, Spain and Sweden. We define these indices for a PIGLOG cost function and a dynamic specification of the LAIDS allows us to estimate them using aggregated time-series from 1964 to 1993. The calculated index numbers show that: (i) Spain presents the highest values for all groups, whereas the lowest appear in Germany and the UK, (ii) the highest values were in both oil crisis years, 1973 and 1979, whereas the lowest were generally in 1966 and in 1993, and (iii) the mean values reveal that Spain and France display the highest true cost-of-living indices, whereas Germany and the UK show the lowest.

Suggested Citation

  • Jose Alberto Molina, 1998. "Analysing the effects of price changes on the cost of living of consumers using true indices," Applied Economics Letters, Taylor & Francis Journals, vol. 5(10), pages 639-644.
    • Handle: RePEc:taf:apeclt:v:5:y:1998:i:10:p:639-644
    DOI: 10.1080/135048598354320
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/135048598354320&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/135048598354320?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blanciforti, Laura & Green, Richard, 1983. "An Almost Ideal Demand System Incorporating Habits: An Analysis of Expenditures on Food and Aggregate Commodity Groups," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 511-515, August.
    2. D. G. Tipping, 1970. "Price Changes and Income Distribution," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 19(1), pages 1-17, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaikh Hamid & Tej Dhakar, 2008. "The behaviour of the US consumer price index 1913-2003: a study of seasonality in the monthly US CPI," Applied Economics, Taylor & Francis Journals, vol. 40(13), pages 1637-1650.
    2. Alcay, Alejandro & Escudero, Carlos, 2019. "Efectos de la renta y los precios en la demanda de alimentos: un análisis para el caso español 1980-2015 [Efects of income and prices in food demand: an analysis for the Spanish case 1980-2015]," MPRA Paper 92698, University Library of Munich, Germany.
    3. Elena Lasarte Navamuel & Dusan Paredes & Esteban Fernández Vázquez, 2012. "A true cost of living index for Spain using a microeconomic approach and censored data," Documentos de Trabajo en Economia y Ciencia Regional 26, Universidad Catolica del Norte, Chile, Department of Economics, revised Aug 2012.
    4. Chomali, Laura, 2024. "Consumo de Aliños procesados en Europa: Evidencia con datos alimentarios de EFSA [Consumption of Processed Seasonings in Europe: Evidence from EFSA Food Data]," MPRA Paper 121201, University Library of Munich, Germany.
    5. García, Lucia & Velilla, Jorge, 2018. "Estimación del Modelo de Demanda de Rotterdam para España: evolución de las elasticidades [Estimation of the Rotterdam Model in Spain: the Evolution of Elasticities]," MPRA Paper 88785, University Library of Munich, Germany.
    6. Mora Gómez, Manuel & Mompel Lancina, David, 2019. "Cultura, educación y ocio en España: Estimaciones del Sistema de Demanda Casi Ideal y del Modelo de Rotterdam [Culture, education and laisure in Spain: Estimation of the Ideal demand system and Rot," MPRA Paper 94477, University Library of Munich, Germany.
    7. Perchín Milián, Celia & Cañoto Martínez, Miguel, 2019. "Gastos Médicos en España: Estimaciones del Sistema de Demanda Casi Ideal y del Modelo de Rotterdam [Medical Expenses in Spain: Estimations of the Almost Ideal Demand System and of the Rotterdam Mod," MPRA Paper 92400, University Library of Munich, Germany.
    8. García, Lucia, 2018. "Demand behaviour in Spain during the last three decades: What is the ideal microeconomic model to represent consumer preferences?," MPRA Paper 87937, University Library of Munich, Germany.
    9. Magaña, Diego & Muñoz, Katherine, 2019. "¿Cuál es el modelo microeconómico ideal para representar las preferencias de los consumidores españoles en el periodo 1980-2015?: El caso de muebles, mobiliario y equipamiento [Which is the ideal m," MPRA Paper 94604, University Library of Munich, Germany.
    10. Miranda-Buetas, Sara & Gracia-Raluy, Elisa, 2019. "Análisis de los Patrones de Demanda en el Sector Textil Español [Demand Analysis of Clothing Sector in Spain]," MPRA Paper 92430, University Library of Munich, Germany.
    11. Baigorri, Bárbara & Ledesma, Ana, 2019. "Rentas de vivienda y suministros en el hogar: Selección del modelo microeconómico ideal para representar las preferencias del consumidor [Household income and supplies in the home: Selection of the," MPRA Paper 93265, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aborisade, Olumide & Carpio, Carlos, 2017. "Household Demand for Meat in Nigeria," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252839, Southern Agricultural Economics Association.
    2. Can, Zeynep Gizem & O'Donoghue, Cathal & Sologon, Denisa Maria & Smith, Darius & Griffin, Rosaleen & Murray, Una, 2023. "Modelling the Distributional Effects of the Cost-of-Living Crisis in Turkey and the South Caucasus: A Microsimulation Analysis," IZA Discussion Papers 16619, Institute of Labor Economics (IZA).
    3. Md Abu Bakr Siddique & Md Abdus Salam & Mohammad Chhiddikur Rahman, 2020. "Estimating the Demand Elasticity of Rice in Bangladesh: An Application of the AIDS Model," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 10(3), pages 721-728.
    4. Muhammad, Andrew & Jones, Keithly G., 2009. "An Assessment of Dynamic Behavior in the U.S. Catfish Market: An Application of the Generalized Dynamic Rotterdam Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(3), pages 1-14, December.
    5. Hongbo Liu & Kevin A. Parton & Zhang-Yue Zhou & Rod Cox, 2009. "At-home meat consumption in China: an empirical study ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 485-501, October.
    6. Richards, Timothy J. & Patterson, Paul M., 1998. "New Varieties and the Returns to Commodity Promotion: Washington Fuji Apples," Working Papers 28541, Arizona State University, Morrison School of Agribusiness and Resource Management.
    7. Lybbert, Travis J. & Vosti, Stephen A. & Adams, Katherine P. & Guissou, Rosemonde, 2018. "Household demand persistence for child micronutrient supplementation," Journal of Health Economics, Elsevier, vol. 62(C), pages 147-164.
    8. Lars-Erik Borge & Jørn Rattsø, 1998. "Demographic Shift, Relative Costs and the Allocation of Local Public Consumption in Norway," Chapters, in: Jørn Rattsø (ed.), Fiscal Federalism and State–local Finance, chapter 5, pages 71-92, Edward Elgar Publishing.
    9. Liu, Hongbo & Parton, Kevin A. & Zhou, Zhang-Yue & Cox, Rod, 2009. "At-home meat consumption in China: an empirical study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 1-17.
    10. Kenneth W. Clements & E. A. Selvanathan & Saroja Selvanathan, 1992. "Henri Theil’s Contributions to Demand Analysis," Palgrave Macmillan Books, in: Ronald Bewley & Tran Hoa (ed.), Contributions to Consumer Demand and Econometrics, chapter 5, pages 74-104, Palgrave Macmillan.
    11. Kapteyn, Arie, et al, 1997. "Interdependent Preferences: An Econometric Analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(6), pages 665-686, Nov.-Dec..
    12. Paul Cashin, 1991. "A Model Of The Disaggregated Demand For Meat In Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 263-283, December.
    13. Eugene Jones, 1997. "Consumer demand for carbohydrates: A look across products and income classes," Agribusiness, John Wiley & Sons, Ltd., vol. 13(6), pages 599-612.
    14. Arabatzis, Garyfallos & Klonaris, Stathis, 2009. "An analysis of Greek wood and wood product imports: Evidence from the linear quadratic aids," Forest Policy and Economics, Elsevier, vol. 11(4), pages 266-270, July.
    15. Goodwin, Barry K. & Harper, Daniel C. & Schnepf, Randall D., 2003. "Short-Run Demand Relationships in the U.S. Fats and Oils Complex," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(1), pages 1-14, April.
    16. Poray, Michael C. & Foster, Kenneth A. & Dorfman, Jeffrey H., 2000. "Measuring An Almost Ideal Demand System With Generalized Flexible Least Squares," 2000 Annual meeting, July 30-August 2, Tampa, FL 21796, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Aaron Strong & V. Kerry Smith, 2010. "Reconsidering the Economics of Demand Analysis with Kinked Budget Constraints," Land Economics, University of Wisconsin Press, vol. 86(1), pages 173-190.
    18. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 109-139, October.
    19. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    20. Maganga, Assa Mulagha & Phiri, M. Alexander R. & Mapemba, Lawrence D. & Gebremariam, Gebrelibanos G. & Dzanja, Josephy K., 2014. "A Food Demand System Estimation for Rural Malawi: Estimates Using Third Integrated Household Survey Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 174853, Agricultural and Applied Economics Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:5:y:1998:i:10:p:639-644. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.