RES: Question to Doug

Doug Henwood dhenwood at panix.com
Tue May 1 09:02:57 PDT 2001


Alexandre Fenelon wrote:


> >In the Third world we use US$2,00/day (poverty) and US$1,00/day (misery).
>>Are those data adjusted for the dollar devaluation that occurs along
>>time or are raw data?
>
>I'm pretty sure these are PPP measures.
>
>-Thank you for your your answers, but maybe I didn´t formulate well the
>Third
>-question. Althought this data for Third world is PPP, the purchase power
>-of the dollar itself devaluates each year. So, when I compare poverty
>levels
>-from 1990 to 1998, for instance, I should have two adjustements:
>1st-For PPP in both 1990 and 1998 data
>2nd-A conversion for 1998 to 1990 to make up for the dollar devaluation
>(corresponding to USA inflation?). Is it done?
>I´m wrong about necessity of those corrections?

PPP measures are usually "real" - adjusted for inflation. See, for example, <http://www.worldbank.org/poverty/data/trends/income.htm#table1>.

Doug



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