National and international income dispersion and aggregate expenditures
We examine linkages between aggregate household income, distribution of that income, and aggregate cross-country expenditure patterns. We are able to decompose income effects into international income dispersion effects (from variations in average income) and national income dispersion (income distribution) effects. This yields insights for relevant aggregate household specifications in computational policy models emphasizing household distribution of income. This also yields a consumption-pattern based inequality index that summarizes the projection of inequality through expenditure patterns. Estimation of flexible demand systems with representative expenditures (which reflects income distribution within countries) yields a significant relationship between representative consumption and cross-country demand patterns.
|Date of creation:||Jun 2004|
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Web page: http://www.dteconz.unizar.es/
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- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Ianchovichina, Elena & Nicita, Alessandro & Soloaga, Isidro, 2001.
"Trade reform and household welfare : the case of Mexico,"
Policy Research Working Paper Series
2667, The World Bank.
- Francois, Joseph F & Kaplan, Seth, 1996. "Aggregate Demand Shifts, Income Distribution, and the Linder Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 244-50, May.
- Atkinson, A-B, 1996.
"Bringing Income Distribution in from the Cold,"
117, Economics Group, Nuffield College, University of Oxford.
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