Distributional Effects of Inflation in the Czech Republic
|Author:||Mgr. Petra Linhartová|
|Year:||2015 - summer|
|Leaders:|| doc. Petr Janský Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||Consumer price index captures the changing costs of the consumer basket
of a typical household. Despite differences in spending patterns, change in consumer
price index is used as a measure of inflation for the whole population.
The aim of this thesis is to assess how close to the official inflation rate households
are and determine which groups have significantly different inflation.
Using the Czech data from the Household Budget Survey over the 1990–2012
period we calculated specific inflation for each household in our sample. We
first found out that on average only two thirds of households are close to the
official inflation rate, which led us to the construction of subgroup price indices.
In the empirical part, we examined the effect of household characteristics on
inflation by applying the fixed effects estimation. We found that low-income
households, pensioners, households in urban areas and households with few
members have higher than average inflation.