Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches
Abstract The high cost of living is a major challenge for Ivorian consumers. This paper seeks to explain this issue using Principal Component Analysis (PCA), Hierarchical Ascending Classification (HAC), as well as linear, regularized (Lasso, Ridge, Elastic Net), and generalized regression. The aim i...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Springer
2025-07-01
|
| Series: | Discover Analytics |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s44257-025-00036-3 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849238002782437376 |
|---|---|
| author | Aubin Yao N’Dri Auguste Konan Kouakou Amadou Kamagaté Ouagnina Hili |
| author_facet | Aubin Yao N’Dri Auguste Konan Kouakou Amadou Kamagaté Ouagnina Hili |
| author_sort | Aubin Yao N’Dri |
| collection | DOAJ |
| description | Abstract The high cost of living is a major challenge for Ivorian consumers. This paper seeks to explain this issue using Principal Component Analysis (PCA), Hierarchical Ascending Classification (HAC), as well as linear, regularized (Lasso, Ridge, Elastic Net), and generalized regression. The aim is also to identify the key determinants contributing to this phenomenon. Cluster analysis revealed three distinct periods characterized by different spending levels and economic and social priorities: Group 1: January 1997 to January 2003; Group 2: February 2003 to October 2012; Group 3: November 2012 to December 2023. Education emerged as the most discriminating factor, followed by closely related indices (FC, FHR, RH, MGS, CPI, HWE, Com, RC). These distinct periods particularly reflect changes in education policies, budget allocations to education, and variations in educational performance. Compared with Groups 1 and 3, the CPI increased by an average of 53.074%. This implies that the real value of 100000 FCFA is now equivalent to 65326.971 FCFA. An adjustment to restore purchasing power would require 153,076.13 FCFA. The study also revealed strong multicollinearity among the indices. The most significant variables influencing the CPI are FNAB, HWE, Tr, RH, MGS, and Edu, all of which are positively correlated with CPI. This suggests that an increase in any of these factors leads to a rise in CPI. Consequently, the high cost of living currently experienced by households is not solely driven by food expenditures but also by these broader economic variables. |
| format | Article |
| id | doaj-art-9b4e6b744da24a7e8a420bd7d53dcd37 |
| institution | Kabale University |
| issn | 2731-8117 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Springer |
| record_format | Article |
| series | Discover Analytics |
| spelling | doaj-art-9b4e6b744da24a7e8a420bd7d53dcd372025-08-20T04:01:47ZengSpringerDiscover Analytics2731-81172025-07-013112110.1007/s44257-025-00036-3Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approachesAubin Yao N’Dri0Auguste Konan Kouakou1Amadou Kamagaté2Ouagnina Hili3Environmental Sciences and Technologies Laboratory, University Jean LOROUGNON GUEDEDepartment of Economics and Management, University Jean LOROUGNON GUEDEEnvironmental Sciences and Technologies Laboratory, University Jean LOROUGNON GUEDEStatistics, Probability and Operations Research Laboratory, Félix Houphouët-Boigny National Polytechnic InstituteAbstract The high cost of living is a major challenge for Ivorian consumers. This paper seeks to explain this issue using Principal Component Analysis (PCA), Hierarchical Ascending Classification (HAC), as well as linear, regularized (Lasso, Ridge, Elastic Net), and generalized regression. The aim is also to identify the key determinants contributing to this phenomenon. Cluster analysis revealed three distinct periods characterized by different spending levels and economic and social priorities: Group 1: January 1997 to January 2003; Group 2: February 2003 to October 2012; Group 3: November 2012 to December 2023. Education emerged as the most discriminating factor, followed by closely related indices (FC, FHR, RH, MGS, CPI, HWE, Com, RC). These distinct periods particularly reflect changes in education policies, budget allocations to education, and variations in educational performance. Compared with Groups 1 and 3, the CPI increased by an average of 53.074%. This implies that the real value of 100000 FCFA is now equivalent to 65326.971 FCFA. An adjustment to restore purchasing power would require 153,076.13 FCFA. The study also revealed strong multicollinearity among the indices. The most significant variables influencing the CPI are FNAB, HWE, Tr, RH, MGS, and Edu, all of which are positively correlated with CPI. This suggests that an increase in any of these factors leads to a rise in CPI. Consequently, the high cost of living currently experienced by households is not solely driven by food expenditures but also by these broader economic variables.https://doi.org/10.1007/s44257-025-00036-3Consumer price indexHierarchical ascending classificationPrincipal component analysisLinearRegularized (Lasso, Ridge, Elastic Net)Generalized Regression |
| spellingShingle | Aubin Yao N’Dri Auguste Konan Kouakou Amadou Kamagaté Ouagnina Hili Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches Discover Analytics Consumer price index Hierarchical ascending classification Principal component analysis Linear Regularized (Lasso, Ridge, Elastic Net) Generalized Regression |
| title | Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches |
| title_full | Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches |
| title_fullStr | Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches |
| title_full_unstemmed | Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches |
| title_short | Multivariate analysis of Côte d’Ivoire consumer price index: linear, regularized and generalized regression approaches |
| title_sort | multivariate analysis of cote d ivoire consumer price index linear regularized and generalized regression approaches |
| topic | Consumer price index Hierarchical ascending classification Principal component analysis Linear Regularized (Lasso, Ridge, Elastic Net) Generalized Regression |
| url | https://doi.org/10.1007/s44257-025-00036-3 |
| work_keys_str_mv | AT aubinyaondri multivariateanalysisofcotedivoireconsumerpriceindexlinearregularizedandgeneralizedregressionapproaches AT augustekonankouakou multivariateanalysisofcotedivoireconsumerpriceindexlinearregularizedandgeneralizedregressionapproaches AT amadoukamagate multivariateanalysisofcotedivoireconsumerpriceindexlinearregularizedandgeneralizedregressionapproaches AT ouagninahili multivariateanalysisofcotedivoireconsumerpriceindexlinearregularizedandgeneralizedregressionapproaches |