Price Indexes, Inequality, and the Measurement of World Poverty
Angus Deaton ()
American Economic Review, 2010, vol. 100, issue 1, 5-34
I discuss the measurement of world poverty and inequality, with particular attention to the role of purchasing power parity (PPP) price indexes from the International Comparison Project. Global inequality increased with the latest revision of the ICP, and this reduced the global poverty line relative to the US dollar. The recent large increase of nearly half a billion poor people came from an inappropriate updating of the global poverty line, not from the ICP revisions. Even so, PPP comparisons between widely different countries rest on weak theoretical and empirical foundations. I argue for wider use of self-reports from international monitoring surveys, and for a global poverty line that is truly denominated in US dollars. (JEL C43, D31, I31, I32, F31)
JEL-codes: C43 D31 F31 I31 I32 D82 M54 F31 F32 G15 D12 D83 H41 Z13 C83 D12 O12 P36 J31 J63 J65 R23 I18 L11 L65 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.100.1.5
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (133) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Price indexes, inequality, and the measurement of world poverty (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:100:y:2010:i:1:p:5-34
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().