Changes in relative prices and welfare in Argentina
An estimation based on distributional characteristics
DOI:
https://doi.org/10.24215/18521649e018Keywords:
distributional characteristic, social welfare, price changes, relative pricesAbstract
This paper studies the effects on social welfare occurred after changes in relative prices in Argentina between December 2016 and June 2019. Distributional characteristics of goods are estimated using the Households Expenditure Survey 2017-2018, following Navajas (2004). Results show a negative welfare effect, mainly driven by increases in relative prices of electricity and gas, communications, transport and some food items. Heterogeneities both in consumption patterns and changes in relative prices lead to different effects on welfare among regions.
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