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New estimates of global poverty and inequality: How much difference do price data

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  • Peter Edward

    (Newcastle University, UK)

  • Andy Sumner

    (King’s College, London, UK)

Abstract

This paper makes new estimates of global poverty and inequality in 2012 using both `old', 2005 and `new', 2011 purchasing power parity (PPP) price data in order to assess systematically what difference PPP data makes to the estimates. The methodology for the 2011 PPP data is thought to be superior. However, contentions remain. We discuss the PPPs and justify the use of 2011 PPP data to estimate global poverty and inequality, at least for comparison purposes.

Suggested Citation

  • Peter Edward & Andy Sumner, 2015. "New estimates of global poverty and inequality: How much difference do price data," Working Papers 365, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2015-365
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2015-365.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jonathan Glennie & Nilima Gulrajani & Andy Sumner & Myles Wickstead, 2019. "A proposal for a new universal development commitment," WIDER Working Paper Series wp-2019-119, World Institute for Development Economic Research (UNU-WIDER).
    2. Francisco H. G. Ferreira & Shaohua Chen & Andrew Dabalen & Yuri Dikhanov & Nada Hamadeh & Dean Jolliffe & Ambar Narayan & Espen Beer Prydz & Ana Revenga & Prem Sangraula & Umar Serajuddin & Nobuo Yosh, 2016. "A global count of the extreme poor in 2012: data issues, methodology and initial results," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 141-172, June.
    3. Martin Ravallion, 2016. "Toward better global poverty measures," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 227-248, June.
    4. Ranjan Ray, 2017. "The Role of Prices in Welfare Comparisons: Methodological Developments and a Selective Survey of the Empirical Literature," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 314-332, June.
    5. Arief Anshory Yusuf & Andy Sumner, 2017. "Multidimensional poverty in Indonesia: How inclusive has economic growth been?," Departmental Working Papers 2017-09, The Australian National University, Arndt-Corden Department of Economics.
    6. Andy Sumner, 2016. "The world's two new middles Growth, precarity, structural change, and the limitations of the special case," WIDER Working Paper Series 034, World Institute for Development Economic Research (UNU-WIDER).
    7. Andy Sumner & Nilima Gulrajani & Myles Wickstead & Jonathan Glennie, 2020. "A Proposal for a New Universal Development Commitment," Global Policy, London School of Economics and Political Science, vol. 11(4), pages 478-485, September.
    8. Frank‐Borge Wietzke, 2020. "Poverty, Inequality, and Fertility: The Contribution of Demographic Change to Global Poverty Reduction," Population and Development Review, The Population Council, Inc., vol. 46(1), pages 65-99, March.
    9. Andy Sumner, 2016. "The world's two new middles: Growth, precarity, structural change, and the limitations of the special case," WIDER Working Paper Series wp-2016-34, World Institute for Development Economic Research (UNU-WIDER).
    10. Amita Majumder & Ranjan Ray & Sattwik Santra, 2016. "Global and Country Poverty Rates, Welfare Rankings of the Regions and Purchasing Power Parities: How Robust Are the Results?," Monash Economics Working Papers 11-16, Monash University, Department of Economics.
    11. Ravallion, Martin, 2018. "An exploration of the changes in the international comparison program’s global economic landscape," World Development, Elsevier, vol. 105(C), pages 201-216.

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