Large devaluations and inflation inequality
Replicating Cravino and Levchenko (2017) with evidence from Brazil
Bibliographic Data
| ID | 21653256 |
|---|---|
| Authors | Raphael Rocha Gouvêa (0000-0001-7581-3469, Institute for Applied Economic Research Brasília Brazil, corresponding author) |
| Year | 2022 |
| Volume | 37 |
| Issue | 3 |
| Pages | 657-664 |
| Publication date | 2022-04-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Applied Econometrics (JOURNAL) |
| Journal identifiers | ISSN: 1099-1255 • E-ISSN: 0883-7252 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/jae.2880 |
| OpenAlex | W3196601721 |
| Language | EN |
| Citations received | 1 |
| References cited | 9 |
In the aftermath of large devaluations, prices of tradable goods/lower‐priced varieties increase significantly more than the prices of nontradables/higher‐priced varieties. These relative price changes may lead to inflation inequality when household consumption baskets are different across the distribution of income. Using Cravino and Levchenko's (2017, https://doi.org/10.1257/aer.20151551 ) methodology, we show that inflation of poor households in Brazil was at least 11 percentage points higher than that of the rich in the aftermath of the 2002 large devaluation. A detailed case study of the City of São Paulo estimates an inflation inequality ranging from 8 to 11 percentage points in the city
Devaluation · Economics · Exchange rate · Inequality · Monetary economics · Percentage point · Relative price · Economic theories and models · Economic Theory and Policy · Global trade and economics · Mathematics
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2024 - 2024 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |