Friday, September 7, 2012

Consumption Based Estimates of Chinese Growth

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

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