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A Note on Estimating Income Inequality across countries using PPP Exchange Rates
01 February, 2018, Jayati Ghosh
The use of exchange rates based on Purchasing Power Parities to compare income across countries and over time has become standard practise. But there are reasons to believe this could lead to excessively inflated incomes for poor countries and in some cases also inflate the extent of real changes over time. Estimates of gross domestic product growth in Chinese and Indian economies in recent years provide examples of this.
Rising Incomes, Falling Wages
31 January, 2018, Jayati Ghosh
Changing the unequal economic tendencies brought out in the World Inequality Report 2018 requires changing the politics—not just making governments more accountable to the people, but making people realise that they are being fooled.
Do Purchasing Power Parity Exchange Rates Mislead on Incomes? The case of China
05 December, 2017, C.P. Chandrasekhar & Jayati Ghosh
The use of exchange rates based on Purchasing Power Parities (PPPs) to compare incomes across countries and over time is now standard practice. But this may lead to excessively inflated incomes for poorer countries and not capture the real changes over time.
The Search for India's Bulky Middle
22 July, 2015, C.P. Chandrasekhar
The Pew study estimates suggest that in the most successful years of the neoliberal project, the expected expansion of the global middle class, which is required to sustain high growth has not been realised.
Why Asia is Probably Poorer than We Think
09 September, 2014, Jayati Ghosh
Asia's 'success' in reducing poverty uses a flawed system for measuring income on the basis of an average value based on Purchasing Power Parity and ignores food insecurity.
How Little can a Person Live on Today?
03 October, 2011, Utsa Patnaik
The Planning Commission's laughable estimates of the ''poverty line'' follow from a mistake in method which it made thirty years ago and has clung to ever since. On the basis of the officially accepted nutritional norms, the true poverty lines show that 75 percent of the population is in poverty. With this high level of destitution, the sensible policy is to revert to a universal distribution system with an urban employment guarantee scheme.
Poverty Lines and Poor Minds
03 October, 2011, Himanshu
There is much academic debate on the appropriate estimates of poverty line. Poverty lines are benchmarks for policy makers to measure progress over time. The use of such measures for targeting social assistance is arbitrary. The Planning Commission's use of narrowly defined poverty line estimates restricts access of the poor to basic entitlements such as food and health. What is required is universal provisioning of these entitlements without recourse to any targeting.
The Tendulkar Report: A Small Step Forward
23 December, 2009, R. Ramakumar
The report of the expert group on the estimation of poverty led by Professor Suresh Tendulkar has been submitted to the Planning Commission. Apart from issues of comparability of data across NSS rounds, the most important ToR for the committee was to ''review alternative conceptualizations of poverty, and the associated technical aspects of procedures of measurement and database for empirical estimation'' of poverty in India.
A Long View of Global GDP Growth
26 July, 2008, Jayati Ghosh
It is sometime useful to situate recent income growth in the longer term context, if only to remind ourselves of the structural processes involved. A close examination of long term patterns in relative positions show that the recent optimism about developing countries emerging as dominant players may be misplaced.
Knowledge and the Asian Challenge
05 September, 2006, C.P. Chandrasekhar & Jayati Ghosh
According to official statistics, China continued to grow at a scorching 10.2 per cent during the first quarter of 2006, as compared with the corresponding period of the previous year. India closely followed China's performance, with GDP growing at an estimated 8.4 per cent during financial year 2005-06.

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