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Four decades of consumption inequality in Brazil (1987-2018)

Author

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  • Pedro Forquesato

  • Ana Bottega

  • Victoria Luiza Tosi

Abstract

Although Brazil is a major developing economy and one of the most unequal countries in the world, there are notably few estimates of consumption inequality for that country. In this paper, we present the most comprehensive time series of consumption inequality ever built for Brazil, covering over four decades (1987-2018). We also innovate compared to previous analysis by estimating demand systems and using the estimated Engel income elasticities to correct for several forms of measurement error. This is especially important since older rounds of the Brazilian consumption survey are plagued with mismeasurement, biasing previous estimates. We find that when considering the ratio of the top 10% to the bottom 40% of income, consumption inequality remained constant until the mid-1990s, and has since decreased sharply to about 60% of its initial levels.

Suggested Citation

  • Pedro Forquesato & Ana Bottega & Victoria Luiza Tosi, 2026. "Four decades of consumption inequality in Brazil (1987-2018)," Working Papers, Department of Economics 2026_02, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2026wpecon2
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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