A Method of Calculating Regional Consumer Price Differentials with Illustrative Evidence from India

18 Pages Posted: 1 May 2004

See all articles by Dipankor Coondoo

Dipankor Coondoo

Indian Statistical Institute, New Delhi - Economic Research Unit

Amita Majumder

Indian Statistical Institute, Kolkata

Ranjan Ray

Monash University - Department of Economics

Abstract

In this paper we propose a method of estimating multilateral regional price index numbers from a given household level data set on item-wise unit values/prices. The method is closely related to the Country-Product Dummy variable model of Summers (1973). This method is likely to be particularly useful in studies of regional comparisons of poverty and inequality, optimal commodity taxes and tax reforms. To illustrate the method, we use it to calculate the regional consumer price index numbers for Eastern, Western and Southern India (taking Northern India as the reference region) separately for three categories of rural and urban households, viz., all households and those below and above the poverty line, using household level unit records of the NSS 50th round (1993-94) Consumer Expenditure Survey.

Suggested Citation

Coondoo, Dipankor and Majumder, Amita and Ray, Ranjan, A Method of Calculating Regional Consumer Price Differentials with Illustrative Evidence from India. Available at SSRN: https://ssrn.com/abstract=522054

Dipankor Coondoo (Contact Author)

Indian Statistical Institute, New Delhi - Economic Research Unit ( email )

203 B. T. Road
Calcutta, 700 035
India

Amita Majumder

Indian Statistical Institute, Kolkata ( email )

203 B. T. Road
Kolkata, 700 035
India
+91--33-25752610 (Phone)

HOME PAGE: http://www.isical.ac.in/~eru/amita.html

Ranjan Ray

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia

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