Poors Living Standards By Justina Banyt MOTIVATION BEHIND Poor - PowerPoint PPT Presentation

Mar 02, 2024 •377 likes •447 views

Critical review of the paper by Christian Broda, Ephraim Leibtag, and David E. Weinstein The Role of Prices in Measuring the Poors Living Standards By Justina Banyt MOTIVATION BEHIND Poor people pay more than rich? > location (Chung

Critical review of the paper by Christian Broda, Ephraim Leibtag, and David E. Weinstein The Role of Prices in Measuring the Poor’s Living Standards By Justina Banyt ė
MOTIVATION BEHIND Poor people pay more than rich? > location (Chung & Myers, 1999) > price discrimination (Myers et al., 2009) Poverty rates stayed the same Substitution effect (CPI – static)  Is it true?
APPROACH Quantitative chosen Database constructed on the Control variables Regressions run purchases(Nielsen, identified 2005) > measuring elasticity > controlling for the location/store type
RESULTS Poor do pay less! Coefficient [ 0.0108; 0.0088 ]*** > experience of shopping matters > trade-off: leisure vs. bargains > cheaper labour force in poor regions In poorer areas – lower prices Quality effect (1/3) vs. shopping (2/3)
RESULTS REVISITED Questionable approach Interesting topic > Data manipulation? Representative data set > OVB (education, tastes) > Low R 2 (9.29 at the best case) Novel approach Definition of poverty itself (two sided substitution)

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