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The Distribution of Household Spending in Australia

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Amy Beech & Rosetta Dollman & Richard Finlay & Gianni La Cava, 2014. "The Distribution of Household Spending in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 13-22, March.
    • Handle: RePEc:rba:rbabul:mar2014-02
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2014/mar/pdf/bu-0314-2.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Lichner, Ivan & Lyócsa, Štefan & Výrostová, Eva, 2022. "Nominal and discretionary household income convergence: The effect of a crisis in a small open economy," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 18-31.
    4. Zhang, Jinhui & Purcal, Sachi & Wei, Jiaqin, 2021. "Optimal life insurance and annuity demand under hyperbolic discounting when bequests are luxury goods," Insurance: Mathematics and Economics, Elsevier, vol. 101(PA), pages 80-90.

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    Keywords

    Consumption; Income; Inequality;
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