Purchasing Power Parity Exchange Rates for the Global Poor
The global poverty count uses a common global poverty line, often referred to as the dollar-a-day line, currently $1.25 at 2005 international prices, whose construction and application depends on purchasing power parity (PPP) exchange rates for consumption. The price indexes that underlie the PPPs used for this purpose are constructed for purposes of national income accounting, using weights that represent patterns of aggregate consumption, not the consumption patterns of the global poor. We use household surveys from 62 developing countries to calculate global poverty-weighted PPPs and to calculate global poverty lines and new global poverty counts. (JEL C43, E21, F31, I32, O15)
Volume (Year): 3 (2011)
Issue (Month): 2 (April)
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References listed on IDEAS
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- Angus Deaton & Alan Heston, 2008.
"Understanding PPPs and PPP-based national accounts,"
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- Shaohua Chen & Martin Ravallion, 2010.
"The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 125(4), pages 1577-1625.
- Chen, Shaohua & Ravallion, Martin, 2008. "The developing world is poorer than we thought, but no less successful in the fight against poverty," Policy Research Working Paper Series 4703, The World Bank.
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