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Relation And Development Of Expenditure Inequality And Income Inequality Of Czech Households

Author

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  • Zdeňka Malá
  • Gabriela Červená

Abstract

The paper focuses on an analysis of income inequality and expenditure inequality of households in the Czech Republic for the period 2001 – 2009, based on data from the Statistics of Family Accounts. The basic methodological tool is the Gini coefficient and its decomposition according to individual categories of consumer expenditure. The conducted research reaches the conclusion that income inequality is higher than inequality in consumer expenditure, and income inequality for the analyzed period is growing at a higher rate than expenditure inequality. Tax-transfer tools effectively eliminate income inequality, but nevertheless inequality of disposable income exceeds the inequality of net monetary expenditure. As regards the mutual relationship of income inequality and expenditure inequality, expenditure inequality within a period of economic growth and boom copied the course of income inequality, while within a period of economic decline and recession both inequalities showed a completely different development. The main determinant affecting income inequality may be considered to be non-consumer expenditure, particularly expenditure for the acquisition of real estate.

Suggested Citation

  • Zdeňka Malá & Gabriela Červená, 2012. "Relation And Development Of Expenditure Inequality And Income Inequality Of Czech Households," Economic Annals, Faculty of Economics, University of Belgrade, vol. 57(192), pages 55-78, January –.
  • Handle: RePEc:beo:journl:v:57:y:2012:i:192:p:55-78
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    File URL: http://ea.ekof.bg.ac.rs/pdf/192/174.pdf
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    References listed on IDEAS

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    1. Tullio Jappelli & Luigi Pistaferri, 2010. "Does Consumption Inequality Track Income Inequality in Italy?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 133-153, January.
    2. Michał Brzeziński & Krzysztof Kostro, 2010. "Income and consumption inequality in Poland, 1998–2008," Bank i Kredyt, Narodowy Bank Polski, vol. 41(4), pages 45-72.
    3. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
    4. Richard Blundell & Luigi Pistaferri & Ian Preston, 2008. "Consumption Inequality and Partial Insurance," American Economic Review, American Economic Association, vol. 98(5), pages 1887-1921, December.
    5. Daunfeldt, Sven-Olov & Fölster, Stefan & Hortlund, Per, 2010. "Consumption and income inequality in Sweden: a different story," HUI Working Papers 39, HUI Research.
    6. Wodon, Quentin & Yitzhaki, Shlomo, 2002. "Inequality and Social Welfare," MPRA Paper 12298, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Wadim Strielkowski & Jan Hněvkovský, 2013. "The Performance Of The Czech Labour Market After The 2004 Eu Enlargement," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(197), pages 79-94, April – J.

    More about this item

    Keywords

    Gini coefficient; primary income; disposable income; consumer expenditure; Czech Republic.;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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