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|
|Date of revision:|
|Contact details of provider:|| Postal: Gran via, 2 50005 Zaragoza|
Fax: 976 76 19 96
Web page: http://www.dteconz.unizar.es/
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- Francois, Joseph & Rojas-Romagosa, Hugo, 2005.
"The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets,"
CEPR Discussion Papers
5214, C.E.P.R. Discussion Papers.
- Joseph F. Francois & Hugo Rojas-Romagosa, 2005. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," Tinbergen Institute Discussion Papers 05-079/2, Tinbergen Institute.
- Joseph Francois & Hugo Rojas-Romagosa, 2007. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," IIDE Discussion Papers 20070805, Institue for International and Development Economics.
- Francois, Joseph F. & Rojas-Romagosa, Hugo, 2005. "The construction and interpretation of combined cross-section and time-series inequality datasets," Policy Research Working Paper Series 3748, The World Bank.
- Atkinson, A-B, 1996.
"Bringing Income Distribution in from the Cold,"
117, Economics Group, Nuffield College, University of Oxford.
- 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, 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.
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