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Measuring the distributional effects of inflation in Croatia by using the LES approach

Saša Drezgić ; Ekonomski fakultet Sveučilišta u Rijeci, Rijeka, Hrvatska


Puni tekst: engleski pdf 556 Kb

str. 239-256

preuzimanja: 850

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Sažetak

This paper deals with distributional effects of price changes in period from 2000 to 2007. Even though in this period we can observe relatively low inflation rates, the goal of the research is to determine whether there are possible negative effects of price changes on income inequality in Croatia. The approach bases on the application of linear expenditure system (LES) on the aggregate data, i.e. deciles of household income groups. The results show that overall inflation rate does not determine distributional effects in Croatia. In some years, changes in prices present higher burden for lower income groups, while in other years, higher income groups are worse off. It seems that redistributive effect primarily depends on the structure of price changes. Therefore we need further research on this issue.

Ključne riječi

Inequality; inflation; linear expenditure system; Croatia

Hrčak ID:

30572

URI

https://hrcak.srce.hr/30572

Datum izdavanja:

19.12.2008.

Podaci na drugim jezicima: hrvatski

Posjeta: 1.842 *