The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the perception of inflation on households' well-being. However, most of the debate has involved the measurement of the correct consumer price index at the national level. Much less analysis has been carried out on the distributional consequences of inflation on every household. The paper addresses this issue by performing a microsimulation analysis of the impact of inflation on Italian households in the period 19972007. It is shown that the impact of inflation has an ambiguous path over the period, with a large concentration of welfare losses around the introduction of the Euro currency. In particular, it is found that poorer and larger households are severely hurt by inflation and that the prices of gas and gasoline are largely responsible for determining the living conditions of Italian households.

Relative Price Changes and Households' Welfare in Italy / Cepparulo, Alessandra; Gastaldi, Francesca; Paolo, Liberati; Pisano, Elena. - In: REVIEW OF INCOME AND WEALTH. - ISSN 0034-6586. - STAMPA. - 58:4(2012), pp. 675-714. [10.1111/j.1475-4991.2012.00515.x]

Relative Price Changes and Households' Welfare in Italy

CEPPARULO, Alessandra;GASTALDI, Francesca;PISANO, ELENA
2012

Abstract

The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the perception of inflation on households' well-being. However, most of the debate has involved the measurement of the correct consumer price index at the national level. Much less analysis has been carried out on the distributional consequences of inflation on every household. The paper addresses this issue by performing a microsimulation analysis of the impact of inflation on Italian households in the period 19972007. It is shown that the impact of inflation has an ambiguous path over the period, with a large concentration of welfare losses around the introduction of the Euro currency. In particular, it is found that poorer and larger households are severely hurt by inflation and that the prices of gas and gasoline are largely responsible for determining the living conditions of Italian households.
2012
households; redistribution; relative price; relative prices; welfare
01 Pubblicazione su rivista::01a Articolo in rivista
Relative Price Changes and Households' Welfare in Italy / Cepparulo, Alessandra; Gastaldi, Francesca; Paolo, Liberati; Pisano, Elena. - In: REVIEW OF INCOME AND WEALTH. - ISSN 0034-6586. - STAMPA. - 58:4(2012), pp. 675-714. [10.1111/j.1475-4991.2012.00515.x]
File allegati a questo prodotto
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/494206
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? 2
social impact