2013-05-05 papers

on China

Issue of 2013–05–05
one paper chosen by
Zheng Fang, Ohio State University

The Cost of Living in China: Implications for Inequality and Poverty By Almås, Ingvild; Johnsen, Åshild Auglænd

The Cost of Living in China: Implications for Inequality and Poverty

By:	Almås, Ingvild (Norwegian School of Economics and Business Administration); Johnsen, Åshild Auglænd (University of Stavanger)
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.
Keywords:	China; Poverty; Inequality; CPI
JEL:	D01 E31 F01
Date:	2013–02–07
URL:	https://d.repec.org/n?u=RePEc:hhs:osloec:2013_006

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