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Consumption Based Estimates of Urban Chinese Growth, Marcos Chamon, Irineu de Carvalho Filho

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
Table Of Contents
Cover; Contents; I. Introduction; II. Empirical Methodology; III. Data; IV. Results; Parametric Model; Semi-Parametric Model; Robustness; Distributional Implications; V. Conclusion; References; Tables; 1. Summary Statistics; 2. Parametric Regression Results; 3. Implications of Estimated Bias for Consumption and Income Growth in 1993-2005; Figures; 1. Non-Parametric Estimates of Relationship between Food Shares and Household Expenditure; 2. Semi-Parametric Estimates of Relationship between Food Shares and Household Expenditure
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (25 p.)
Specific Material Designation
Form Of Item

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