{
  "title": "Consumption Based Estimates of Urban Chinese Growth",
  "publication": "IMF Working Papers, December 23, 2013",
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  "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.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Paper estimates household income growth rates implied by food demand for a sample of urban Chinese households in 1993–2005.\n- Authors: Marcos Chamon, Irineu E de Carvalho Filho.\n- Date: December 23, 2013.\n- Series: IMF Working Paper No. 2013/265."
    },
    {
      "heading": "Methodology",
      "content": "- Approach: Estimates based on Engel curves for food consumption.\n- Data scope: Urban Chinese household sample covering 1993–2005.\n- Analytical focus: Implied per capita income growth from observed food demand versus nominal incomes deflated by the CPI."
    },
    {
      "heading": "Key Findings",
      "content": "- Estimated average per capita income growth implied by food demand: 6.8 percent per year in 1993–2005.\n- Average per capita income growth obtained by deflating nominal incomes by the CPI: 5.9 percent per year.\n- Interpretation of discrepancy: Attributed to a small bias in the CPI, of a similar magnitude to the CPI bias often associated with the United States.\n- Distributional finding: Stronger gains among poorer households; urban inflation up to 2005 in China was characterized as “pro-poor” because the increase in the cost of living for poorer households was smaller than for the average household."
    },
    {
      "heading": "Interpretation and Policy Implications",
      "content": "- CPI bias: Results suggest the CPI undervalued true income growth by the difference between 6.8 percent and 5.9 percent per year over 1993–2005.\n- Welfare distribution: Evidence that poorer urban households experienced relatively larger real income gains and faced smaller increases in cost of living up to 2005.\n- Relevance: Findings inform assessments of measurement error in price deflators and the interpretation of income growth and inflation impacts across income groups.\n\n---\n\n Content in this bundle\n\n- wp13265\n  - wp13265 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp13265 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/consumption-based-estimates-of-urban-chinese-growth-41170"
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    "Authors: Marcos Chamon, Irineu E de Carvalho Filho",
    "Published: December 23, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484329672.001",
    "Paper estimates household income growth rates implied by food demand for a sample of urban Chinese households in 1993–2005.",
    "Authors: Marcos Chamon, Irineu E de Carvalho Filho.",
    "Date: December 23, 2013.",
    "Series: IMF Working Paper No. 2013/265.",
    "Approach: Estimates based on Engel curves for food consumption.",
    "Data scope: Urban Chinese household sample covering 1993–2005.",
    "Analytical focus: Implied per capita income growth from observed food demand versus nominal incomes deflated by the CPI.",
    "Estimated average per capita income growth implied by food demand: 6.8 percent per year in 1993–2005.",
    "Average per capita income growth obtained by deflating nominal incomes by the CPI: 5.9 percent per year.",
    "Interpretation of discrepancy: Attributed to a small bias in the CPI, of a similar magnitude to the CPI bias often associated with the United States.",
    "Distributional finding: Stronger gains among poorer households; urban inflation up to 2005 in China was characterized as “pro-poor” because the increase in the cost of living for poorer households was smaller than for the average household.",
    "CPI bias: Results suggest the CPI undervalued true income growth by the difference between 6.8 percent and 5.9 percent per year over 1993–2005.",
    "Welfare distribution: Evidence that poorer urban households experienced relatively larger real income gains and faced smaller increases in cost of living up to 2005.",
    "Relevance: Findings inform assessments of measurement error in price deflators and the interpretation of income growth and inflation impacts across income groups.",
    "**_wp13265**"
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