Analysis of the inflationary redistribution of consumption and wealth, evidence from Hungary
Bibliographic Data
| ID | 21281904 |
|---|---|
| Authors | Zoltán Sipiczki (0000-0003-3541-4628, Department of Investment, Finance and Accounting; Institute of Rural Development and Sustainable Economy, Hungarian University of Agricultural and Life Sciences, Kaposvár Campus, Hungary), Anett Parádi Dolgos (Department of Investment, Finance and Accounting; Institute of Rural Development and Sustainable Economy, Hungarian University of Agricultural and Life Sciences, Kaposvár Campus, Hungary), Joseph Vargas (0000-0002-9199-2599, Department of Investment, Finance and Accounting; Institute of Rural Development and Sustainable Economy, Hungarian University of Agricultural and Life Sciences, Kaposvár Campus, Hungary) |
| Year | 2023 |
| Volume | 73 |
| Issue | 1 |
| Pages | 129-143 |
| Publication date | 2023-03-27 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Acta Oeconomica (JOURNAL) |
| Journal identifiers | ISSN: 0001-6373 • E-ISSN: 1588-2659 |
| Publisher | Akademiai Kiado Zrt. (PUBLISHER • HU) |
| DOI | 10.1556/032.2023.00008 |
| OpenAlex | W4360999095 |
| Language | EN |
| Citations received | 2 |
Fluctuating prices can cause unintended redistribution of income and wealth, which may be particularly painful to lower income households. Our study examines the indirect effects of this redistribution in an empirical way: it focuses on the capital market distortions of inflation and the disparities in wealth and income. Consumer Price Index (CPI) measures average inflation. However, households feel different inflation rates because their expenditure patterns are different from the ‘average’ patterns. We used the Kruskal – Wallis H test to determine if there are statistically significant differences between low- and high-income households. We calculated alternative inflation rates based on income deciles' different consumption basket. The study finds that households with low income often feel higher inflation than in the actual price indices published by the statistical offices. As our research shows, individuals in different wealth deciles perceive significantly different inflation. Our results also provide important information for economic policymakers, because if social groups perceive different inflation, it modifies the expected behaviour of the population, thereby weakening the economic policy effectiveness of different decisions
Consumer price index (South Africa) · Consumption (sociology) · Decile · Demographic economics · Economics · Inflation (cosmology) · Labour economics · Macroeconomics · Monetary economics · Monetary policy · Real interest rate · Redistribution (election) · Redistribution of income and wealth · Economic theories and models · Financial Literacy, Pension, Retirement Analysis · Monetary Policy and Economic Impact
| Citations per year | 1 |
|---|---|
| Citation span | 2024 - 2024 (1) |
| Highly cited | No |