Publication

Cross-country income levels over time: did the developing world suddenly become much richer?

Inklaar, R. & Prasada Rao, D. S., 12-Dec-2014, Groningen: GGDC, (GGDC Working Papers; vol. GD-151).

Research output: Working paperAcademic

The latest global survey on relative prices and income levels showed revisions to income levels that were larger in lower-income countries, thereby shifting the world income distribution. The aim of this paper is to establish whether changes in measurement methodology and price sampling methods between the latest price survey for 2011 and the previous survey for 2005 can explain these large differences. We construct a counterfactual set of relative prices for 2005 that harmonizes measurement and we find that the systematic differences in income levels are substantially reduced or even eliminated, implying that international income inequality had been overstated.
Original languageEnglish
Place of PublicationGroningen
PublisherGGDC
Publication statusPublished - 12-Dec-2014

Publication series

NameGGDC Working Papers
VolumeGD-151

    Keywords

  • purchasing power parities, International Comparison Program (ICP), extrapolation, price levels, price sampling bias, real incomes, inequality
Related Publications
  1. Cross-country income levels over time: did the developing world suddenly become much richer?

    Inklaar, R. & Prasada Rao, D. S., Jan-2017, In : American Economic Journal. Macroeconomics. 9, 1, p. 265-290 26 p.

    Research output: Contribution to journalArticleAcademicpeer-review

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