AFFLUENCE AND FOOD A Simple Way to Infer Incomes
Accurate and timely measures of cross-country real incomes are still a rarity. As the share of expenditure devoted to food is readily available, we use of Engel’s law in reciprocal form to measure affluence. Analysis of real income data for the OECD countries indicates that this approach is viable. To recognise the role of uncertainty in the analysis, we present the results in the form of stochastic cross-country income comparisons.
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