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The Cost of Living in China: Implications for Inequality and Poverty

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  • 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.

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File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2013/memo-06-2013.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 06/2013.

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Length: 43 pages
Date of creation: 07 Feb 2013
Date of revision:
Handle: RePEc:hhs:osloec:2013_006

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
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Web page: http://www.oekonomi.uio.no/indexe.html
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Keywords: China; Poverty; Inequality; CPI;

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References

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Cited by:
  1. Emi Nakamura & Jón Steinsson & Miao Liu, 2014. "Are Chinese Growth and Inflation Too Smooth? Evidence from Engel Curves," NBER Working Papers 19893, National Bureau of Economic Research, Inc.

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