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The Distribution of Household Spending in Australia

Listed author(s):
  • Amy Beech

    (Reserve Bank of Australia)

  • Rosetta Dollman

    (Reserve Bank of Australia)

  • Richard Finlay

    (Reserve Bank of Australia)

  • Gianni La Cava

    (Reserve Bank of Australia)

This article uses household-level data to examine the distribution of spending and saving in Australia and how that has changed over time. The distribution of spending and saving is important as, among other things, it can affect the way that the household sector responds to economic shocks. The data indicate that households headed by older people have increased their share of total spending over the past two decades, reflecting both an ageing population and an increase in the average spending of older households compared with other households. The household survey data also indicate that spending is more equally distributed than income across households due to their ability to borrow and save. Moreover, consumption inequality has been little changed, despite an increase in income inequality over recent decades.

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File URL: http://www.rba.gov.au/publications/bulletin/2014/mar/pdf/bu-0314-2.pdf
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Article provided by Reserve Bank of Australia in its journal RBA Bulletin.

Volume (Year): (2014)
Issue (Month): (March)
Pages: 13-22

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Handle: RePEc:rba:rbabul:mar2014-02
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  1. Mark Bils & Mark Aguiar, 2010. "Has Consumption Inequality Mirrored Income Inequality?," 2010 Meeting Papers 1334, Society for Economic Dynamics.
  2. Josep Pijoan-Mas & Virginia Sanchez-Marcos, 2010. "Spain is Different: Falling Trends of Inequality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 154-178, January.
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  4. Nicola Fuchs-Schuendeln & Dirk Krueger & Mathias Sommer, 2010. "Inequality Trends for Germany in the Last Two Decades: A Tale of Two Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 103-132, January.
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  9. David Domeij & Martin Floden, 2010. "Inequality Trends in Sweden 1978-2004," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 179-208, January.
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  11. Roger Wilkins, 2014. "Evaluating the Evidence on Income Inequality in Australia in the 2000s," The Economic Record, The Economic Society of Australia, vol. 90(288), pages 63-89, March.
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