nep-cna New Economics Papers
on China
Issue of 2014‒01‒17
one paper chosen by
Zheng Fang
Ohio State University

  1. Consumption Based Estimates of Urban Chinese Growth By Marcos Chamon; Irineu E. Carvalho Filho

  1. By: Marcos Chamon; Irineu E. Carvalho Filho
    Abstract: This paper estimates the household income growth rates implied by food demand in a sample of urban Chinese households in 1993–2005. Our estimates, based on Engel curves for food consumption, indicate an average per capita income growth of 6.8 percent per year in 1993–2005. This figure is slightly larger than the 5.9 percent per year obtained by deflating nominal incomes by the CPI. We attribute this discrepancy to a small bias in the CPI, which is of a similar magnitude to the one often associated with the CPI in the United States. Our estimates indicate stronger gains among poorer households, suggesting that urban inflation up to 2005 in China was “pro-poor,†in the sense that the increase in the cost of living for poorer households was smaller than for the average one.
    Keywords: Economic growth;China;Income distribution;Private sector;Economic models;Household consumption; Income growth; CPI Bias
    Date: 2013–12–23

This nep-cna issue is ©2014 by Zheng Fang. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.