Are Chinese Growth and Inflation Too Smooth? Evidence from Engel Curves
---- Acknowledgements -----
We thank Michelle Sazo and He Yang for excellent research assistance. We thank Fred Gale for his generous help in obtaining Chinese expenditure data. We thank Ingvild Almas, Christopher Balding, Marcos Chamon, Jessie Handbury, Xian Huang, Peter Klenow, Aart Kraay, Nancy Qian, Xiaodong Zhu, and seminar participants at various institutions for helpful comments and discussions. We thank Bruce Hamilton and Dora Costa for sharing their adjusted estimates of U.S. inflation with us. This research has been supported by National Science Foundation grant SES 1056107. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.