The cost of living in China : implications for inequality and poverty
Working paper
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Date
2012-11Metadata
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- Discussion papers (SAM) [663]
Abstract
China’s economic development in recent decades has been tremendous, but
subject to debate. This paper calculates regional prices that make incomes comparable
across both time and space using the Engel-curve approach. Incomes
are adjusted using these price indices, providing new estimates of inequality and
poverty development. Our findings contrast with measures based on the official
consumer price indices (CPIs) – in a time characterized by high economic growth,
we find a larger increase in inequality and a more moderate poverty reduction than
what is indicated by the CPI-adjusted measures.