Friday, September 7, 2012

Consumption Based Estimates of Chinese Growth


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Consumption Based Estimates of Chinese Growth
July, 2012
Irineu de Carvalho Filho and Marcos Chamon

Abstract:
This paper estimates the household income growth rates implied by food demand in a sample of urban Chinese households in 1993-2005. Our estimates, based on Engel curves for food consumption, indicate an average per capita income growth of 6.8 percent per year in 1993-2005. 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 CPI in the United States. Our estimates indicate stronger gains among the poorer households, suggesting that inflation in China was “pro-poor,” in the sense that the increase in the cost of living for poorer households was smaller than for the average one.

1 comment:

  1. Alguma causa para o aumento do custo de vida para as famílias mais pobres ter sido menor?

    Parabéns pelo trabalho, deve ser bem interessante

    ReplyDelete