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Affluence and Food: A Simple Way to Infer Incomes

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  • Kenneth W. Clements
  • Dongling Chen

Abstract

Accurate and timely measures of cross-country real incomes are still a rarity. As the share of expenditure devoted to food is readily available, we use Engel's law in reciprocal form to measure affluence. Analysis of real income data for over 100 countries indicates that this approach is viable. To recognize the role of uncertainty in the analysis, we present the results in the form of stochastic cross-country income comparisons. Copyright 2010, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ajae/aaq049
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 92 (2010)
Issue (Month): 4 ()
Pages: 909-926

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Handle: RePEc:oup:ajagec:v:92:y:2010:i:4:p:909-926

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  1. Bhanoji Rao, V. V., 1981. "Measurement of deprivation and poverty based on the proportion spent on food: An exploratory exercise," World Development, Elsevier, vol. 9(4), pages 337-353, April.
  2. Heston, Alan, 1973. "A Comparison of Some Short-Cut Methods of Estimating Real Product Per Capita," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 79-104, March.
  3. van Praag, Bernard M S & Spit, Jan S & van de Stadt, Huib, 1982. "A Comparison between the Food Ratio Poverty Line and the Leyden Poverty Line," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 691-94, November.
  4. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
  5. Barlow, Robin, 1977. "A Test of Alternative Methods of Making GNP Comparisons," Economic Journal, Royal Economic Society, vol. 87(347), pages 450-59, September.
  6. Bruce W. Hamilton, 2001. "Using Engel's Law to Estimate CPI Bias," American Economic Review, American Economic Association, vol. 91(3), pages 619-630, June.
  7. Seale, James L., Jr. & Regmi, Anita & Bernstein, Jason, 2003. "International Evidence On Food Consumption Patterns," Technical Bulletins 33580, United States Department of Agriculture, Economic Research Service.
  8. Clements, Kenneth W & Selvanathan, Antony & Selvanathan, Saroja, 1996. "Applied Demand Analysis: A Survey," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 63-81, March.
  9. Duggar, Jan Warren, 1969. "International Comparisons of Income Levels: An Additional Measure," Economic Journal, Royal Economic Society, vol. 79(313), pages 109-16, March.
  10. Beckerman, Wilfred & Bacon, Robert, 1970. "International Comparisons of Income Levels: an Additional Measure: Reply," Economic Journal, Royal Economic Society, vol. 80(318), pages 418-20, June.
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Cited by:
  1. Kenneth W Clements & Grace Gao & Thomas Simpson, 2012. "Disparities in Incomes and Prices Internationally," Economics Discussion / Working Papers 12-01, The University of Western Australia, Department of Economics.
  2. Kenneth W Clements & Grace Gao, 2011. "Quality, Quantity, Spending and Prices," Economics Discussion / Working Papers 11-12, The University of Western Australia, Department of Economics.
  3. Seale, James L. & Solano, Alexis A., 2012. "The changing demand for energy in rich and poor countries over 25years," Energy Economics, Elsevier, vol. 34(6), pages 1834-1844.

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