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Consumption, Needs and Inequality

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  • Slesnick, Daniel T
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    Abstract

    Most empirical studies demonstrating a U-turn in inequality in the United States are based on the distribution of income. However, utility is derived from the consumption of goods and services and there are many reasons to expect the distribution of expenditure to be different from the distribution of income. The author demonstrates that consumption-based inequality indexes actually decrease over the postwar era. This conclusion differs from the stylized facts because of differences in the income and expenditure distributions. Differences also arise from the inclusion of equivalence scales to account for the different needs of heterogeneous households. Copyright 1994 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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    Bibliographic Info

    Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

    Volume (Year): 35 (1994)
    Issue (Month): 3 (August)
    Pages: 677-703

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    Handle: RePEc:ier:iecrev:v:35:y:1994:i:3:p:677-703

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    Cited by:
    1. Parry, Ian W. H., 2004. "Are emissions permits regressive?," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 364-387, March.
    2. Parry, Ian W. H. & Sigman, Hilary & Walls, Margaret & Williams III, Roberton C., 2005. "The Incidence of Pollution Control Policies," Working paper 205, Regulation2point0.
    3. Johnathan Fisher & David S. Johnson & Joseph Marchand & Timothy M. Smeeding & Barbara Boyle Torrey, 2005. "The Retirement Consumption Conundrum: Evidence from a Consumption Survey," Working Papers, Center for Retirement Research at Boston College wp2005-14, Center for Retirement Research, revised Dec 2005.
    4. Blundell, Richard William & Pistaferri, Luigi & Preston, Ian, 2002. "Partial Insurance, Information, and Consumption Dynamics," CEPR Discussion Papers 3666, C.E.P.R. Discussion Papers.
    5. Michael Hurd & Susann Rohwedder, 2006. "Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," Working Papers 410, RAND Corporation Publications Department.
    6. Udo Ebert, 2011. "The redistribution of income when needs differ," Working Papers V-331-11, University of Oldenburg, Department of Economics, revised Feb 2011.
    7. Michael Hurd & Susann Rohwedder, 2006. "Consumption and Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," Working Papers wp110, University of Michigan, Michigan Retirement Research Center.
    8. Jones, Carol Adaire & Milkove, Daniel & Paszkiewicz, Laura, 2009. "Measuring Farm Household Well-Being: Comparing Consumption and Income-based Measures," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49355, Agricultural and Applied Economics Association.
    9. Maria Martínez, 2005. "Distributive Aspects of Public Expenditure on Housing in Spain," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(3), pages 237-253, December.
    10. Hung-Hao Chang, 2012. "Consumption inequality between farm and nonfarm households in Taiwan: a decomposition analysis of differences in distribution," Agricultural Economics, International Association of Agricultural Economists, vol. 43(5), pages 487-498, 09.

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