Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
The cost of living in China: Implications for inequality and poverty.
() and Åshild Auglænd Johnsen
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: Inequality; poverty; China.; (follow links to similar papers)
JEL-Codes: D01; E31; (follow links to similar papers)
35 pages, November 30, 2012
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