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: China; Poverty; Inequality; CPI; (follow links to similar papers)
JEL-Codes: D01; E31; F01; (follow links to similar papers)
43 pages, February 7, 2013
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