A note on estimating income inequality across countries using PPP exchange rates

Jayati Ghosh

The Economic and Labour Relations Review, 2018, vol. 29, issue 1, 24-37

Abstract: The use of exchange rates based on Purchasing Power Parities to compare incomes across countries and over time has now become standard practice. But there are reasons to believe that this could lead to excessively inflated incomes for poorer countries and in some cases also inflate the extent of real changes over time. Estimates of gross domestic product growth in the Chinese and Indian economies in recent years provide examples of this. JEL Codes: I32, N35, P52

Keywords: Economic development; exchange rates; global poverty; inequality; measurement; purchasing power parities; sustainable development goals; trade arbitrage (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecolab:v:29:y:2018:i:1:p:24-37

DOI: 10.1177/1035304618756263

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