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 ?
Thereafter, there is a sharp fall to Korea and "the others" leaving, average income per head in BRIC at $2,359 per head (up from $905 in 1995); and $2,357 in N11 ex-Korea.
Overall, household income per head increased at similar rates all over the UK, showing no signs of wealth inequalities evening out.
And world income per head has about doubled in real terms since 1975.
The price considered is the price implicit in the consumption of insurance services; for income, we take real disposable income per head.
The debate is especially sensitive, as the Commission's Cohesion report published in January already revealed something about what awaits a 27-nation EU (see European Report 2565, same Section):- over one-third of the population would live in countries with an income per head lass than 90% of the EU average, against one-sixth at present;- at regional level, the average income per head for the bottom 10% of the population living in the least prosperous regions in an EU of 27 countries, would be only 31% of the average, against 61% at present.
My main point was to emphasize that, between 1820 and 1994, real income per head in the United States increased by a factor of 17.
Another purpose of this research is to discuss adequate ways to perform international comparisons of income, and income per head, and to correct for depreciation.
But income per head is a much better measure of poverty than income per household.
First, national income per head measures economic well-being.
There are a number of objections which can be made to the procedure adopted here, which is to convert mean income levels to the average in the European Community (EC) in 1990 based on National Disposable Income per head calculated using purchasing power parities (OECD, 1992, Table C, and population figures from Table D).
And this despite the fact that in terms of real income per head, the African American in the USA is a great many times richer than the Chinese or the Keralite.
It makes for a faster rate of increase in consumption per head, and hence, in a steady state for faster growth in income per head too.