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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Prices and Poverty in Urban Ethiopia
Authors:Gebremedhin, Tesfaye AlemayehuISNI
Whelan, Stephen
Year:2008
Periodical:Journal of African Economies
Volume:17
Issue:1
Period:January
Pages:1-33
Language:English
Geographic term:Ethiopia
Subjects:price indexes
poverty
urban households
Economics and Trade
Urbanization and Migration
External link:https://jae.oxfordjournals.org/content/17/1/1.full.pdf
Abstract:One of the most important ingredients in the measurement of poverty is price. This paper derives a set of price indexes for urban Ethiopia, using data from four household surveys conducted between 1994 and 2000. It provides estimates of the rate of inflation over this period for seven urban centres and compares price levels across cities for this period. The price indexes developed are then used to calculate measures of poverty for the various cities. Further, the implications of using alternative consumer price indexes on the magnitude and profile of poverty are examined. The findings of the study show that the cities of Mekelle, in the north, and Dire Dawa, in the east, are the two most expensive cities in urban Ethiopia. The poverty estimates obtained, after accounting for price differences across time and between cities, show that poverty in urban Ethiopia is high. The poverty head count ranges between 49 percent in 1995 and 40 percent in 2000. The key contribution of the study is the finding that poverty estimates and profile obtained using price differences implicit in the poverty lines are similar to those obtained using preferred price indexes such as Fisher's price indexes. Bibliogr., notes, ref., sum. [ASC Leiden abstract]
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