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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, high income 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.
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1
Distributional effects of oil price changes on household expenditures: evidence from Mali
2006, International Monetary Fund, African Dept.
in English
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2
Distributional Effects of Oil Price Changes on Household Expenditures: Evidence from Mali
2006, International Monetary Fund
in English
1451908865 9781451908862
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3
Distributional Effects of Oil Price Changes on Household Expenditures: Evidence from Mali
2006, International Monetary Fund
in English
1452709785 9781452709789
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4
Distributional Effects of Oil Price Changes on Household Expenditures: Evidence from Mali
2006, International Monetary Fund
in English
1451863519 9781451863512
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Edition Notes
"March 2006."
Includes bibliographical references (p. 27-28).
Also available on the World Wide Web.
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