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Expenditure elasticity and consumption inequality in rural China

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  • Conglong Fang
  • Qinghua Shi

Abstract

Consumption inequality is a matter of great concern. However, measurement error always appears when doing so. To handle this, this paper uses a method based on Engel expenditure elasticity proposed by Aguiar and Bils. The results show that consumption inequality in rural China based on Engel expenditure elasticity is smaller than the income inequality and consumption inequality calculated by the ratio of high-income to low-income households.

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  • Conglong Fang & Qinghua Shi, 2023. "Expenditure elasticity and consumption inequality in rural China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(20), pages 2902-2906, November.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:20:p:2902-2906
    DOI: 10.1080/13504851.2022.2115446
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