Consumer Expenditures and Inequality: An Analysis Based on Decomposition of the Gini Coefficient

Garner, Thesia I.

doi:10.2307/2109636

Cited by 50 publications

(37 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The contribution of each commodity X j to total inequality is then expressed as the slope coefficient of the Engel regression of X j on nondurable expenditure Y . Alternative procedures based on decompositions of the Gini coefficient (see for example Garner, 1993) lead to the same result.…”

Section: Expenditure Inequalitymentioning

confidence: 79%

“…19 Conditions 1 and 2 are identifying restrictions only for the first two terms of the previous expression, using either IS or DS data. On the other hand, the covariance term cannot be identified from the available information since by definition D ∩ I = ∅ 17 Given the restrictions imposed so far, the measurement error affecting the reporting of nondurable commodities cannot be further characterized.…”

Section: Consumption Inequalitymentioning

confidence: 99%

“…Alternatively, bounds on this distribution could be derived exploiting Frechet's or Markov's inequalities. 19 A Taylor expansion of lnC * in a neighborhood of its mean gives…”

Section: Consumption Inequalitymentioning

confidence: 99%

See 2 more Smart Citations

Errors in survey reports of consumption expenditures

Battistin¹

2003

Working Paper Series

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper considers data quality issues for the analysis of consumption inequality exploiting two complementary datasets from the Consumer Expenditure Survey for the United States. The Interview sample follows survey households over four calendar quarters and consists of retrospectively asked information about monthly expenditures on durable and non-durable goods. The Diary sample interviews household for two consecutive weeks and includes detailed information about frequently purchased items (food, personal cares and household supplies). Each survey has its own questionnaire and sample. Information from one sample is exploited as an instrument for the other sample to derive a correction for the measurement error affecting observed measures of consumption inequality. Implications of our findings are used as a test for the permanent income hypothesis. 1 EXECUTIVE SUMMARYThis paper aims to quantify the effect of reporting errors affecting diary-based and recall-based data on non-durable expenditure. It is likely that not all the commodities entering non-durable expenditure are well reported exploiting only one of these two survey methodologies. Expenditures on frequently purchased, smaller items are presumably more accurate using diaries while recall data are more appropriate for large expenditures or expenditures occurring on a regular basis.It turns out that neither diary nor recall-based data alone provide a reliable aggregate measure of total expenditure on non-durables. Ideally, the estimation of totals at micro-level would require information on different consumption categories obtained with the most appropriate methodology. The Family Expenditure Survey for the United Kingdom represents a notable implementation of this strategy.One might argue that for any practical purpose these alternative data collection strategies lead to consistent results in the estimation of economic models of consumption behavior. Unfortunately, evidence from the literature suggests that conclusions are strongly related to the information being used. This problem is addressed by looking at micro data from two independent samples of households from the Consumer Expenditure Survey for the Unites States. This survey represent a unique source of data because it consists of diary an recall information collected on the same set of items, although it refers to separate samples of households.The comparison of the two surveys based on the overlap ...

show abstract

Section: Expenditure Inequalitymentioning

confidence: 79%

Section: Consumption Inequalitymentioning

confidence: 99%

See 1 more Smart Citation

Errors in survey reports of consumption expenditures

Battistin¹

2003

Working Paper Series

View full text Add to dashboard Cite

show abstract

“…4 See, for instance, Jenkins (1995) and García-Peñalosa and Orgiazzi (2013) for decompositions of the CV and Lerman and Yitzhaki (1985), Garner (1993) and Podder (1993) on Gini decompositions.…”

Section: Endnotesmentioning

confidence: 99%

Are changes in the dispersion of hours worked a cause of increased earnings inequality?

2016

View full text Add to dashboard Cite

Earnings are the product of wages and hours of work; hence, the dispersion of hours can magnify or dampen a given distribution of wages. This paper examines how earnings inequality is affected by the dispersion of working hours using data for the USA, the UK, Germany, and France over the period 1989-2012. We find that hours dispersion can account for over a third of earnings inequality in some countries and that its contribution has been growing over time. We interpret the expansion in hours inequality in European countries as being the result of weaker union power that led to less successful bargaining concerning working hours. JEL Classification: D31, J22

show abstract

“…With this regard, it is important to also monitor inequality in the consumption of individual foodstuff s and beverages. For example, Garner (1993) states that understanding the eff ect of individual components on expenditure inequality is signifi cant primarily with regard to the construction of various taxes and subsidies that have an eff ect on the consumer. These are primarily value added tax, excise taxes or various subsidies for foodstuff s or agricultural commodities.…”

Section: Overview Of the Results Of Previous Studiesmentioning

confidence: 99%

Analysis of inequality in the consumption of foodstuffs and beverages - the example of the Czech Republic

Malá¹,

Červená²

2013

Acta Univ. Agric. Silvic. Mendelianae Brun.

View full text Add to dashboard Cite

MALÁ, Z., ČERVENÁ, G.: Analysis of inequality in the consumption of foodstuff s and beverages -the example of the Czech Republic. Acta univ. agric. et silvic. Mendel. Brun., 2012, LX, No. 4, pp. 255-266 The report focuses on the assessment of the rate of inequality in the consumption of foodstuff s and beverages by households in the Czech Republic. It analyzes the said inequality on the basis of data from the Family Account Statistics for the period of 2001-2009. The main methodical tools for the performed analysis are the quantifi cation of the Gini coeffi cient of natural consumption and the consumption expenditures for foodstuff s and beverages of Czech households, the construction, quantifi cation and verifi cation of consumption functions. The obtained results evidence a greater balance in the consumption of foodstuff s and beverages than which is shown by the allocation of the overall expenditures or income of Czech households. At the same time, the said inequality in the consumption of foodstuff s and beverages is characterized by a slightly declining tendency in time. With regard to individual categories of foodstuff s and beverages, the greatest inequality can be defi ned in the case of dispensable commodities, which are consumed by quantitatively wealthier strata of the population, who are simultaneously willing to pay a higher price for them. Thus, for a number of commodities, we can note the greater quality of foodstuff s and beverages consumed by higher income groups. These commodities may primarily be characterized as having a greater price elasticity. On the other hand, there are foodstuff s in the case of which consumers react more fl exibly to changes in income, but whose consumption is relatively stable. Therefore, inequality of consumption is not unequivocally associated with income elasticity, but rather with price elasticity.

show abstract

Consumer Expenditures and Inequality: An Analysis Based on Decomposition of the Gini Coefficient

Cited by 50 publications

References 11 publications

Errors in survey reports of consumption expenditures

Errors in survey reports of consumption expenditures

Are changes in the dispersion of hours worked a cause of increased earnings inequality?

Analysis of inequality in the consumption of foodstuffs and beverages - the example of the Czech Republic

Contact Info

Product

Resources

About