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The cost of living in China : implications for inequality and poverty

Almås, Ingvild; Johnsen, Åshild Auglænd
Working paper
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URI
http://hdl.handle.net/11250/163420
Date
2012-11
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  • Discussion papers (SAM) [586]
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.
Publisher
Norwegian School of Economics, Department of Economics
Series
Discussion paper;21/2012

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