per capita income

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per capita income

the income per head of the population of a country. This is a usual way of distinguishing between the relative WEALTH of countries, although there exist many problems in using it. Not least of the problems is the continued existence of ‘subsistence’ economic activity and a widespread INFORMAL ECONOMY in many societies. This means that much economic activity goes unrecorded. A further difficulty is that exchange rates (the basis of per capita calculations of differences in income) between different currencies often fail to reflect internal differences in the purchasing power of different currencies. Thus, while useful in establishing broad differences between nations, the notion of per capital income should be used with caution in making more detailed comparisons.
References in periodicals archive ?
The empirical analysis employs the per capita income differential as a determinant of trade patterns among trade partners and presents empirical evidence in support of the Linder hypothesis.
This result implies that trade patterns depend on the similarity of per capita income, and that the level of trade in manufactured goods between two countries will be inversely related to the differences in their per capita income, as predicted by Linder.
The simplest way to answer this question is to look at the range of per capita incomes, or the difference between the States with the highest and the lowest per capita income.
Whether measured by changes in the range of per capita incomes or by changes in the coefficient of variation (CV), there was substantial convergence in total per capita personal income from 1950 to 1999.
The convergence in State per capita income in 1950-99 occurred almost entirely during the first 29 years.
TABULAR DATA OMITTED This is fairly consistent with other attempts to estimate the causes of deforestation which find little role for per capita incomes and a significant role for agricultural settlement and timber use (Allen and Barnes 1985; Johnson 1991; World Bank 1991).
They note, however, that there are only two countries (the US and Canada) in their sample with per capita incomes in excess of $16,000 where the cubic part of the functional form becomes relevant.
Here, the willingness to pay to avert damage is close to infinity and the level of per capita income only affects the capacity, not the willingness, to pay.
b) Jurisdictions whose residents' per capita income is more than 160 percent of the per capita income of residents of the state would be excluded from participation.
c) Jurisdictions whose residents' per capita income is more than 120 percent of the state average but equal to or less than 160 percent of this figure would receive "half funding" under the Act.
Critics argue that per capita income may not measure wealth accurately because it distributes income across all indviduals, including children.
As with per capita income, median income growth between the 1990 and 2000 censuses was stronger in most Fourth District counties than in the nation as a whole.