Consumption Based Estimates of Urban Chinese Growth

Consumption Based Estimates of Urban Chinese Growth

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This paper estimates the household income growth rates implied by food demand in a sample of urban Chinese households in 1993a€“2005. Our estimates, based on Engel curves for food consumption, indicate an average per capita income growth of 6.8 percent per year in 1993a€“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 a€œpro-poor, a€ in the sense that the increase in the cost of living for poorer households was smaller than for the average one.Contemporaneous papers on China (both of which cite the present paper) include Cook (2013), who uses the data from the Chinese ... EMPIRICAL METHODOLOGY This section uses the same approach from de Carvalho Filho and Chamon (2012), which builds on the methods ... (1) where the subscripts refer to household i, region j, and period t; w is the share of food in total household expenditures; PF, anbsp;...

Title:Consumption Based Estimates of Urban Chinese Growth
Author:Mr. Marcos Chamon, Irineu E. Carvalho Filho
Publisher:International Monetary Fund - 2013-12-23


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