2021
DOI: 10.17059/ekon.reg.2021-3-7
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Influence of Regional Differences in the Cost of Living on National Income Inequality

Abstract: Regional differences in the cost of living distort the estimates of monetary components of living standards and resource requirements, which are necessary for implementing measures to reduce income inequality as a cause of social injustice and unrest. Thus, we propose a methodology for calculating nominal household income using rouble purchasing power parity to assess its influence on national inequality. This approach measures inequality based on individual data on household income, disregarding the territori… Show more

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“…However, the Gini coefficient captures inequality in a limited way without detailed look at household income situation, hence there is a need for a multi-parameter model to more accurately explain income inequality (Blesch et al, 2022). Another way to compare rather global inequalities can be the analysis of purchasing power parities (PPP), which is an aggregate analysis suitable for developing policy measures aimed at reducing welfare disparities (Surinov and Luppov, 2021). Purchasing power parity analysis is appropriate when income inequalities are examined to identify consumption inequalities between several countries (Åberg Yngwe et al, 2005).…”
Section: Introductionmentioning
confidence: 99%
“…However, the Gini coefficient captures inequality in a limited way without detailed look at household income situation, hence there is a need for a multi-parameter model to more accurately explain income inequality (Blesch et al, 2022). Another way to compare rather global inequalities can be the analysis of purchasing power parities (PPP), which is an aggregate analysis suitable for developing policy measures aimed at reducing welfare disparities (Surinov and Luppov, 2021). Purchasing power parity analysis is appropriate when income inequalities are examined to identify consumption inequalities between several countries (Åberg Yngwe et al, 2005).…”
Section: Introductionmentioning
confidence: 99%