Consumption Based Estimates of Urban Chinese Growth
AbstractThis paper estimates the household income growth rates implied by food demand in a sample of urban Chinese households in 1993â€“2005. Our estimates, based on Engel curves for food consumption, indicate an average per capita income growth of 6.8 percent per year in 1993â€“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 â€œpro-poor,â€ in the sense that the increase in the cost of living for poorer households was smaller than for the average one.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 13/265.
Date of creation: 23 Dec 2013
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-17 (All new papers)
- NEP-CNA-2014-01-17 (China)
- NEP-TRA-2014-01-17 (Transition Economics)
- NEP-URE-2014-01-17 (Urban & Real Estate Economics)
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