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Journal of African Economies, Volume 3, Number 1, 114-142
© 1994 Centre for the Study of African Economies

research-article

A New Regional Price Index for Côte d'Ivoire using Data from the International Comparisons Project1

Ravi Kanbur and Christiaan Grootaert

The World Bank

This paper develops a regional price index for Côte d'Ivoire building on the strengths of two independent data sources — the Living Standards Survey and the International Comparisons Project. The latter collected a wealth of information on prices across the country but did not collect any information on expenditure patterns of households or other socio-economic data. The former collected detailed information on household incomes, expenditure, employment, etc., but its coverage of prices left much to be desired. We bring these two sources together to produce a regional price index that we would argue to be superior to previous estimates based solely on the Living Standards Survey. The procedures we followed will be of interest to practitioners faced with similar data shortcomings, particularly when working on Africa. But we also show that this is no mere statistical exercise — using the new price index can have a significant effect on evaluations of poverty in Côte d‘Ivoire. We also use the new price information to construct disaggregated indices by commodity category and by poverty group.

1This paper is an output of the research project ‘Poverty and Social Dimensions of Structural Adjustment in Côte d'Ivoire, 1985–88 — a Policy-Oriented Analysis’ (RPO 675–26) co-funded by the World Bank and the Commission of the European Communities. The authors would like to thank Philippe Callier, Jean-Luc Dubois, Andrew McKay, and two referees of this journal for helpful comments, and Meera Venkataraman and Gi-Taik Oh for excellent computer programming and general analytic assistance. Any views expressed in this paper are those of the authors only, and should not be attributed to the World Bank or its affiliated institutions.


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