Published Report Details
Mandatory Fields
Murphy, Eithne and Garvey, Eoghan and O'Neill, Stephen
Cost of Living for Different Social Groups in Ireland
Combat Poverty Agency Working Paper Series 08/03
Optional Fields
Distribution, Price Level, Welfare and Poverty
In this paper we use the Household Budget Surveys (HBS) of 1994 and 1999, along with price data from the Central Statistics Office, to calculate price indices for different social groups in Ireland from October 1996 to October 2001 (and on to October 2003 in some cases). The disaggregated data from the HBS allow the contribution of specific categories of goods to overall inflation to be calculated for the State as a whole and for the different social groups. An attempt is also made to measure the degree of substitution bias present within the indices. Certain features of the results lead us to argue that there is scant justification for replacing the traditional Laspeyres price index with so-called ‘true cost of living indices’. This argument gains extra force if one accepts non-neoclassical explanations for the empirical results. We go on to draw conclusions as to how best to measure the welfare effects of changes in the price of goods. This links in to the broader debate regarding objective versus subjective measures of welfare.
Grant Details
Publication Themes
Applied Social Sciences and Public Policy