What are the factors that contribute to inflation rate variations across households in Taiwan?
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Variations in inflation rates across households in Taiwan can be attributed to several factors. Firstly, different household groups face persistent and differential price changes over time, with an inverse relationship between inflation rates and household income levels, particularly affecting the poorest group . Secondly, the pass-through coefficients from global commodity prices to domestic prices for food and energy play a significant role in inflation variations, with Taiwan's unique economic development positioning it between advanced and emerging economies in terms of price pass-through effects . Lastly, structural changes in inflation behavior due to economic liberalization policies in the early 1980s have influenced the fundamental relationship between inflation and its variability in Taiwan .
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| Papers (5) | Insight |
|---|---|
| Economic liberalization in Taiwan from 1982 led to a structural change in inflation behavior, impacting inflation rate variations across households by influencing policies. ARCH and GARCH effects were insignificant. | |
Open access•Posted Content | Household income levels and differential price changes contribute to inflation rate variations across households in Taiwan, with the poorest group facing significantly higher inflation rates. |
| Not addressed in the paper. | |
Open access•Posted Content 11 Feb 2011 1 Citations | Price pass-through from global commodity prices, industrial structure, and household expenditure variations contribute to inflation rate differences across households in Taiwan. |
Open access•Journal Article 5 Citations | Household income levels and expenditure patterns contribute to inflation rate variations across households in Taiwan, with the poorest group facing significantly higher inflation rates. |
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Step 3: "Inflation impacts households by eroding their purchasing power, especially for those with lower income, leading to increased indebtedness and reliance on borrowings". "It disproportionately affects female-headed households, exacerbating feminization of poverty and worsening their economic condition". "Different income groups perceive different inflation rates, with low-income households often feeling higher inflation than the published indices, leading to unintended redistribution of income and wealth". "Additionally, households with lower income, more members, less educated heads, older heads, and male heads experience higher inflation, leading to substantial differences in inflation across different household characteristics".
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