Consumption Based Estimates of Urban Chinese Growth

Author/Editor:

Irineu E de Carvalho Filho ; Marcos d Chamon

Publication Date:

December 23, 2013

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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 the CPI in the United States. Our estimates indicate stronger gains among poorer households, suggesting that urban inflation up to 2005 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.

Series:

Working Paper No. 13/265

Subject(s):

English

Publication Date:

December 23, 2013

ISBN/ISSN:

9781484329672/1018-5941

Stock No:

WPIEA2013265

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

24

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