Purchasing Power Parity Exchange Rates for the Global Poor
- (pp. 137-66)
Abstract
The global poverty count uses a common global poverty line, often referred to as the dollar-a-day line, currently $1.25 at 2005 international prices, whose construction and application depends on purchasing power parity (PPP) exchange rates for consumption. The price indexes that underlie the PPPs used for this purpose are constructed for purposes of national income accounting, using weights that represent patterns of aggregate consumption, not the consumption patterns of the global poor. We use household surveys from 62 developing countries to calculate global poverty-weighted PPPs and to calculate global poverty lines and new global poverty counts. (JEL C43, E21, F31, I32, O15)Citation
Deaton, Angus, and Olivier Dupriez. 2011. "Purchasing Power Parity Exchange Rates for the Global Poor." American Economic Journal: Applied Economics, 3 (2): 137-66. DOI: 10.1257/app.3.2.137Additional Materials
JEL Classification
- C43 Index Numbers and Aggregation; leading indicators
- E21 Macroeconomics: Consumption; Saving; Wealth
- F31 Foreign Exchange
- I32 Measurement and Analysis of Poverty
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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