National and international income dispersion and aggregate expenditures
AbstractWe examine linkages between aggregate household income, distribution of that income, and aggregate cross-country expenditure patterns. We are able to decompose income effects into international income dispersion effects (from variations in average income) and national income dispersion (income distribution) effects. This yields insights for relevant aggregate household specifications in computational policy models emphasizing household distribution of income. This also yields a consumption-pattern based inequality index that summarizes the projection of inequality through expenditure patterns. Estimation of flexible demand systems with representative expenditures (which reflects income distribution within countries) yields a significant relationship between representative consumption and cross-country demand patterns.
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Bibliographic InfoPaper provided by Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza in its series Documentos de Trabajo with number dt2004-06.
Date of creation: Jun 2004
Date of revision:
income distribution; aggregate demand; demand system estimation; Engel curves;
Other versions of this item:
- Carmen Fillat & Joseph Francois, 2004. "National and International Income Dispersion and Aggregate Expenditures," Tinbergen Institute Discussion Papers 04-093/2, Tinbergen Institute.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
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