How Useful Is CPI Price Data for Spatial Price Adjustment in Poverty Measurement? A Case from Ghana
Measuring and comparing the levels of household welfare and poverty in a country require cost-of-living differences across regions to be properly adjusted. In measuring the spatial cost of living, the recent literature underscores the importance of...
| Main Authors: | , , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/851571599590950719/How-Useful-is-CPI-Price-Data-for-Spatial-Price-Adjustment-in-Poverty-Measurement-A-Case-from-Ghana http://hdl.handle.net/10986/34474 |
| Summary: | Measuring and comparing the levels of
household welfare and poverty in a country require
cost-of-living differences across regions to be properly
adjusted. In measuring the spatial cost of living, the
recent literature underscores the importance of detailed
product quality information in the price data. Taking
advantage of the price data availability in Ghana, this case
study explores the Consumer Price Index price data as a
source for spatial price measurement. It applies the country
product dummy method to the Consumer Price Index price data
and compares the results with other methods based on
different price data. The empirical analysis indicates a
potential bias in estimating spatial prices stemming from
the lack of product quality information and, therefore,
suggests the potential usefulness of the Consumer Price
Index price data for spatial price adjustment in poverty
analysis in low- and middle-income countries. |
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