Russian Roulette- Expenditure Inequality and Instability in Russia, 1994-1998
This paper uses the second phase of the Russian Longitudinal Monitoring Survey to investigate the changes in expenditure inequality and instability in Russia between the autumn of 1994 and the autumn of 1998. The expenditure distribution is stable in spite of the economic and political turmoil Russia is going through. However, that does not imply much economic stability. Households' expenditure fluctuated considerably, with over 60 percent of the population's expenditure either more than doubling or falling to less than half their previous levels. Only about 10 percent of all households experienced an expenditure shock of less than 10 percent. The measured level of expenditure mobility is very high. This raises the question whether the observed mobility is in fact the expenditure instability. Distinguishing between the two is crucial for policy makers. While the mobility is often viewed as favorable, the high instability may affect the incentives of Russians to support the economic reforms, acquire human capital, and undertake entrepreneurial activities.
|Date of creation:||01 Sep 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 734 763-5020
Fax: 734 763-5850
Web page: http://www.wdi.umich.eduEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thierry D. Buchs, 1999. "Financial crisis in the Russian Federation: Are the Russians learning to tango?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 687-715, November.
- repec:cup:cbooks:9780521438827 is not listed on IDEAS
- Alberto Alesina & Roberto Perotti, 1993.
"Income Distribution, Political Instability, and Investment,"
NBER Working Papers
4486, National Bureau of Economic Research, Inc.
- Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
- Francisco H. G. Ferreira, 1999.
"Economic transition and the distributions of income and wealth,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 7(2), pages 377-410, July.
- Ferreira, Francisco H. G., 1997. "Economic transition and the distributions of income and wealth," Policy Research Working Paper Series 1808, The World Bank.
- Ravallion, Martin & Lokshin, Michael, 1999. "Subjective economic welfare," Policy Research Working Paper Series 2106, The World Bank.
- Newell, Andrew & Reilly, Barry, 1996. "The gender wage gap in Russia: Some empirical evidence," Labour Economics, Elsevier, vol. 3(3), pages 337-356, October.
- Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
- Aghion, Philippe & Caroli, Eve & GarcÃa-PeÃ±alosa, Cecilia, 1999.
"Inequality and Economic Growth: The Perspective of the New Growth Theories,"
12502063, Harvard University Department of Economics.
- Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
- Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999. "Inequality and economic growth: the perspective of the new growth theories," CEPREMAP Working Papers (Couverture Orange) 9908, CEPREMAP.
- Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
- Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
- Perotti, Roberto & Alesina, Alberto, 1996. "Income Distribution, Political Instability, and Investment," Scholarly Articles 4553018, Harvard University Department of Economics.
- repec:cup:cbooks:9780521433297 is not listed on IDEAS
- R. Moffitt & P. Gottschalk, . "Trends in the covariance structure of earnings in the United States: 1969-1987," Institute for Research on Poverty Discussion Papers 1001-93, University of Wisconsin Institute for Research on Poverty.
When requesting a correction, please mention this item's handle: RePEc:wdi:papers:2000-358. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurie Gendron)
If references are entirely missing, you can add them using this form.