Distributional Effects of Oil Price Changeson Household Expenditures Evidence From Mali

Using an input-output approach, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali. The results show that, although rising gasoline and diesel prices affect mainly nonpoor households, rising kerosene prices are most harmful to the poor. Overall, the...

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Bibliographic Details
Main Author: Kpodar, Kangni
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Subjects:
Oil
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Distributional Effects of Oil Price Changeson Household Expenditures  |b Evidence From Mali  |c Kangni Kpodar 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2006 
300 |a 33 pages 
651 4 |a Mali 
653 |a Inflation 
653 |a Energy: Demand and Supply 
653 |a General Equilibrium and Disequilibrium: Input-Output Tables and Analysis 
653 |a Oil prices 
653 |a Public finance & taxation 
653 |a Oil 
653 |a Investments: Energy 
653 |a Deflation 
653 |a Energy subsidies 
653 |a Petroleum industry and trade 
653 |a National Government Expenditures and Related Policies: General 
653 |a Expenditure 
653 |a Price Level 
653 |a Commodities 
653 |a Energy: General 
653 |a Expenditures, Public 
653 |a Prices 
653 |a Macroeconomics 
653 |a Investment & securities 
653 |a Public Finance 
653 |a Energy industries & utilities 
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989 |b IMF  |a International Monetary Fund 
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520 |a Using an input-output approach, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali. The results show that, although rising gasoline and diesel prices affect mainly nonpoor households, rising kerosene prices are most harmful to the poor. Overall, the impact of fuel prices on household budgets displays a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, highincome households would benefit disproportionately from oil price subsidies. This suggests that a petroleum price subsidy is an ineffective mechanism for protecting the income of poor households compared with a targeted subsidy