nep-cna New Economics Papers
on China
Issue of 2013‒05‒05
one paper chosen by
Zheng Fang
Ohio State University

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

  1. 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

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