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

  • Almås, Ingvild


    (Norwegian School of Economics and Business Administration)

  • Johnsen, Åshild Auglænd


    (University of Stavanger)

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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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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  27. Beatty, Timothy K.M. & Larsen, Erling Roed, 2004. "Using Engel Curves To Estimate Bias In The Canadian Cpi As A Cost Of Living Index," Working Papers 15836, University of British Columbia, Food and Resource Economics.
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