Abstract
In this chapter, we discuss our methodology. We discuss the GrIP model and its construction. This is a custom-built model of global consumption, output and distribution. We focus on the three main construction issues: the data sets used; the global population and consumption coverage; and a new adjustment for this book related to top incomes.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
HFCE—Household Final Consumption Expenditure.
- 2.
The countries and years used in the analysis are: Australia 2003, Canada 2010, Denmark 2010, Finland 2007, France 2005, Germany 2007, Ireland 2007, Italy 2008, Japan 2008, Netherlands 2010, Norway 2010, Spain 2010, Sweden 2005, Switzerland 2004, United Kingdom 2010, United States 2010, Uruguay 2012. One eligible country (Malaysia 2009) was omitted because the PovcalNet share to the top 10% is actually higher than that shown in TIP.
- 3.
There are some exceptions to this where the PovcalNet survey mean already implies a consumption level higher than the HFCE total. In those cases, we reason that the HFCE figures must be questionable and so do not apply the cap.
References
Alvaredo, F., Atkinson, A., Piketty, T., & Saez, E. (2014). The world top incomes database. http://wid.world.
Anand, S., & Segal, P. (2015). The global distribution of income. In Anthony B. Atkinson & François Bourguignon (Eds.), Handbook of income distribution (Vol. 2). Amsterdam: Elsevier.
Dang, H.-A., Lanjouw, P., & Serajuddin, U. (2014). Updating poverty estimates at frequent intervals in the absence of consumption data: Methods and illustration with reference to a middle-income country (World Bank Policy Research Working Paper 7043). Washington, DC: World Bank.
Datt, G. (1998). Computational tools for poverty measurement and analysis (FCND Discussion Papers). Washington, DC: International Food Policy Research Institute (IFPRI).
Deaton, A. (2005). Measuring poverty in a growing world (or measuring growth in a poor world). The Review of Economics and Statistics, 87(1), 1–19.
Deaton, A., & Aten, B. (2014). Trying to understand the PPPs in ICP2011: Why are the results so different? (National Bureau of Economic Research Working Paper 20244). Cambridge, MA: NBER.
Edward, P. (2006). Examining inequality: Who really benefits from global growth? World Development, 34(10), 1667–1695.
Edward, P., & Sumner, A. (2014). Estimating the scale and geography of global poverty now and in the future: How much difference do method and assumptions make? World Development, 58, 67–82.
Edward, P., & Sumner, A. (2015a). New estimates of global poverty and inequality: How much difference do price data really make? (Center for Global Development Working Paper 403). Washington, DC: CGD.
Edward, P., & Sumner, A. (2015b). Philanthropy, welfare capitalism or radically different global economic model: What would it take to end global poverty within a generation based on historical growth patterns? (Center for Global Development [CGD] Working Paper). Washington DC: CGD.
Edward, P., & Sumner, A. (2016). Global inequality and global poverty since the cold war? (CROP Working Paper). Bergen: CROP/UiB.
Korinek, A., Mistiaen, J., & Ravallion, M. (2006). Survey nonresponse and the distribution of income. Journal of Economic Inequality, 4(2), 33–55.
Lahoti, R., Jayadev, A., & Reddy, S. (2014). The global consumption and income project (GCIP): An introduction and preliminary findings. www.globalconsumptionandincomeproject.org. Accessed 4 June 2018.
Lakner, C., & Milanovic, B. (2013). Global income distribution: From the fall of the Berlin wall to the great recession (World Bank Policy Research Working Paper 6719). Washington, DC: World Bank.
Quah, D. (1996). Twin peaks: Growth and convergence in models of distribution dynamics. The Economic Journal, 106(437), 1045–1055.
Ravallion, M. (2003). Measuring aggregate welfare in developing countries: How well do national accounts and surveys agree? The Review of Economics and Statistics, 85(3), 645–652.
Sala-i-Martin, X. (2002). The world distribution of income (estimated from individual country distributions). Mimeo. New York, NY: Columbia University.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Edward, P., Sumner, A. (2019). A Model of Global Consumption, Output and Distribution. In: The End of Poverty. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-14764-8_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-14764-8_3
Published:
Publisher Name: Palgrave Pivot, Cham
Print ISBN: 978-3-030-14763-1
Online ISBN: 978-3-030-14764-8
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)