Purchasing power

About: Purchasing power is a research topic. Over the lifetime, 2714 publications have been published within this topic receiving 36866 citations. The topic is also known as: adjusted for inflation.

The Political Economy of Food Price Policy : the Case of Bangladesh

Abstract: Global food price hikes during 2007 and 2008 resulted in a sharp rise in staple food prices in Bangladesh. The poor and marginalized households were particularly vulnerable to such an adverse situation as their real purchasing power eroded. Several studies indicated that the adverse effects of the food price hike in Bangladesh were primarily manifested by the significant rise in the number of households falling below the poverty line income. At the political front, Bangladesh was run by an unelected and undemocratic ‘civil’ caretaker government backed by the military. The civil caretaker government came to power in January 2007 in the wake of intense political conflicts between the outgoing government led by the Bangladesh Nationalist Party and the opposition, led by the Awami League. The civil …/

Can Gold Investments Provide a Good Hedge Against Inflation? An Empirical Analysis

Abstract: It is widely accepted that inflation erodes purchasing power of retirement savings, redistributes wealth from lenders to borrowers, and threatens private investors' long-term objectives. Thus, there is a high demand on diversifying investors portfolio for both individuals and institutions in order to hedge against inflation. This paper aims to examine the effectiveness of gold investments to hedge against consumer inflation risks in the United States (US). Using monthly data from April, 1986 to June, 2016, that covers more than 30 years, unit root testing approach robust for finite samples, the Johansen multivariate cointegration test procedure and vector error correction model (VECM) have been employed to examine the long-run relationship between gold return and consumer inflation in the US. The key finding suggests that gold investments in the US provide an effective hedge against inflation for investors who are willing to keep their investments for long-run. However, it does not provide any hedge if investors hold it for only short-term. Keywords: Hedge, Investments, Gold prices, Inflation, Cointegration JEL Classifications: C22; C52; G15; Q02

The 'Netflix plus model': can subscription financing improve access to medicines in low- and middle-income countries?

Abstract: At present, pay for prescription models are insufficient at containing costs and improving access to medicines. Subscription financing through tenders, licensing fees and unrestricted or fixed volumes can benefit stakeholders across the supply chain. Pharmaceutical manufacturers can reduce the need for marketing expenses and gain certainty in revenue. This will decrease costs, improve predictability in budget expenditure for payers and remove price as a barrier of access from patients. Inherently, low- and middle-income countries lack the purchasing power to leverage price discounts through typical price arrangements. These markets can realise substantial savings for branded and generic medicines through subscription financing. Procuring of on-patent and off-patent drugs requires separate analysis for competition effects, the length of contract and encouraging innovation in the medicine pipeline. Prices of competitive on-patent medicines and orphan drugs can be reduced through increased competition and volume. Furthermore, pooling expertise and resources through joint procurement has the potential for greater savings. Incentivising research and development within the pharmaceutical industry is essential for sustaining a competitive market, preventing monopolies and improving access to expensive treatments. However, technical capacity, forecasting demand and the quality of generic medicines present limitations which necessitate government support and international partnerships. Ultimately, improving access requires progressive financing mechanisms with patients and cost containment in mind.

The Terms of Trade and the International Transfers of Productivity Gains

Abstract: In international economic relations, when movements of labour are limited and fiscal redistributive policies non-existent, changes in the terms of trade (the ratio between the prices of exports and imports) are the main driving force for the international redistribution of incomes or of productivity gains. The concept of productivity flows linked to price changes can be extended from the interindustry framework to deal with international relations bringing some new insights into the terms of trade issues. The paper develops a conceptual framework for the computation of international flows of productivity gains, taking into consideration the role of exchange rates and the meaning of Purchasing Power Parities. It is completed by a set of computations on Swiss relations with the rest of the world.