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Reducing inequality has been the main focus of every country. This study is an attempt to measure consumption expenditure inequality in Pakistan by focusing on food and non-food components. The study uses secondary data to cover surveys from 2005-06 till 2018-19 using decomposed data taken from Household integrated expenditure survey of Pakistan. Gini coefficient has been used to measure inequality. The study finds fluctuating trends in inequality. Overall both food and non-food consumption inequality has slightly decreased but overall food consumption expenditure inequality increased in 2018-19 when we compared the results with year 2015-16. Food consumption inequality remain higher in rural areas compared to urban areas of the country. Whereas non-food consumption inequality was high in urban areas compared to rural areas of the country.

This paper deals with global imbalances as an increasingly important issue in our age. While the literature establishes that current accounts are inversely related to the ratio of income to consumption inequality in OECD, our study finds that this relationship is reversed in Asia. That ratio has much to do with various schemes of consumption smoothing, which are affected by policy interventions to alleviate the effects of rising income inequality. Different policies may generate opposite outcomes. In OECD, policy encourages consumer credit and deficit spending among low-income people so that consumption inequality is kept artificially low, leading up to a current account deficit. In Asia, policy promotes output growth via high savings with no well-developed smoothing schemes designed to help poor households, so that consumption inequality moves in line with income inequality, with excess savings recycled into a current account surplus. Hence, any reduction in global imbalances requires both regions to adjust their policies for mitigating income inequality and optimizing smoothing schemes. [ABSTRACT FROM AUTHOR]

While food security in Vietnam has significantly improved in recent decades, many urbanites still rely on private food charities. Meanwhile, growing food safety concerns have been studied with a strong focus on emerging middle classes, whereas socio-economic precarity connected to food safety has attracted less attention. Drawing on ethnographic research conducted in food charities in Ho Chi Minh City, this article examines how symbolic and spatial boundaries perpetuate power imbalances within charities and affect patrons' food safety practices. It challenges the narrative that caring about food safety is limited to affluent consumers, instead highlighting the structural constraints that prevent people in urban poverty from acting upon food safety concerns, including (1) power imbalances within food charities and (2) lack of overall food security. The research shows the limitations of food charities in establishing long-term food security for socio-economically marginalised citizens and of a governmental food safety approach emphasising consumer 'choice'. [ABSTRACT FROM AUTHOR]

Reducing inequality has been the main focus of every country. This study is an attempt to measure consumption expenditure inequality in Pakistan by focusing on food and non-food components rather than income, as consumption is considered a better approach to measure inequality. Inequality was measured based on income in past but very few studies focused on consumption approach and no such study was conducted for the given time period. The study uses secondary data to cover surveys from 2005-06 till 2018-19 using decomposed data taken from Household integrated expenditure survey of Pakistan. Gini coefficient has been used to measure inequality. The study finds fluctuating trends in inequality. Overall both food and non-food consumption inequality has slightly decreased but overall food consumption expenditure inequality increased in 2018-19 when we compared the results with year 2015-16. Food consumption inequality remain higher in rural areas compared to urban areas of the country. Whereas non-food consumption inequality was high in urban areas compared to rural areas of the country. [ABSTRACT FROM AUTHOR]

One way inflation affects consumption inequality is through its varying impact on the purchasing power of different households. Indirect taxes, which affect commodity price levels, are another effective factor influencing consumption inequality. Turkey is a highly unequal country with a long history of high inflation. Moreover, indirect taxes have been used frequently as a policy tool in the last decades. This study develops a novel approach to examining the relative contributions of household inflation rates and indirect tax changes to real consumption inequality and applies it to the case of Turkey. The analysis is carried out using both household‐level data and artificial panel data created to apply the Shapley and Owen decomposition methods. The findings roughly can be summarized in two points. First, while nominal consumption during the 2003–2019 period became more equal, real consumption inequality increased as a result of price changes during that time. Variations in household inflation rates are the primary source of increased inequality. Second, changes in indirect taxes account for 31% to 68% of the unequalizing effect of price changes, depending on the method used. Results imply that monetary and indirect tax policy mix have been in favor of the rich in this period. [ABSTRACT FROM AUTHOR]

The issue of population aging and imbalanced urban–rural development are two major economic realities and difficulties in China. They constitute important factors affecting the sustainable development of urban and rural areas. The main objective of this study is to analyze the impact of population aging on the consumption levels of urban and rural residents, including overall and subdivided. The secondary objective is to analyze whether this impact has spatial spillover effects so that the bias caused by ignoring the mutual influence between regions could be eliminated. We used global and local Moran's I, the spatial SLM model, and the SEM model to econometrically analyze the provincial panel data of urban and rural areas obtained from 2010 to 2021. This study found that, first, the distributions of the total consumption and population aging levels of Chinese urban and rural areas are not random and all have obvious spatial dependence characteristics. More specifically, all distributions present significant H-H or L-L clustering phenomena in local space. In other words, high-level areas are surrounded by high-level areas, while low-level areas are surrounded by low-level areas. Second, population aging has a significant negative impact on the overall consumption levels of urban residents and positively increases the consumption level of rural residents, which indicates that population aging will eliminate the urban–rural consumption gap and balance regional economic development to a certain extent. Third, from the perspective of consumption structure, the negative impact of population aging on different consumption expenditure items of urban residents varies, and the effect on various consumption expenditure items of rural residents also shows heterogeneity. Fourth, in terms of the spatial spillover effect, the influence of population aging on the consumption level of urban residents has a significant negative spatial spillover effect; however, in the rural group, the spatial spillover effect caused by the population aging level on the consumption level is not significant. This study provides a new spatial perspective for studying aging and urban–rural consumption inequality behavior, and serves as a reference for the government to further promote the sustainable development of urban–rural consumption in the future. [ABSTRACT FROM AUTHOR]

The paper analyzes the urban-rural, littoral-inland, as well as metropolitan-nonmetropolitan inequalities across the entire welfare distribution. It draws on micro-data from two nationally representative surveys to investigate the structure and dynamics of regional consumption inequality in Tunisia. The analysis covers the five years before the 2011's revolution. It reveals low and stable levels of welfare inequality between inland and littoral regions, but high and growing inequalities along rural–urban and nonmetropolitan-metropolitan lines. Consistent with earlier studies, these results shed light on an urban and metropolitan bias. Regional inequalities are found to be much higher at the top end and the bottom than at the middle of the welfare distribution in both 2005 and 2010. Using the unconditional quantile decomposition, we decompose the distributional welfare differentials among different regions into endowment effects, explained by differences in households' demographic and general characteristics and return effects attributable to unequal returns to these covariates. We find that differences in households' endowments such as demographic composition, standards of living, and human capital, dominate the return effects and contribute more to the regional disparities throughout the welfare distribution. [ABSTRACT FROM AUTHOR]

Consumption inequality is a matter of great concern. However, measurement error always appears when doing so. To handle this, this paper uses a method based on Engel expenditure elasticity proposed by Aguiar and Bils. The results show that consumption inequality in rural China based on Engel expenditure elasticity is smaller than the income inequality and consumption inequality calculated by the ratio of high-income to low-income households. [ABSTRACT FROM AUTHOR]

[Display omitted] • The role of consumption inequality for carbon neutrality is examined. • Two step system GMM is used. • Equity-pollution dillema exists. • Natural resource rents and technological innovation increase GHG emission. The theory of equity pollution dilemma suggests that income redistribution causes environmental pollution. However, little research has been done to test the validity of the equity-pollution dilemma hypothesis on a global scale. Hence, the objective of this study is to examine how reducing consumption inequality imposes environmental burden in the form of greenhouse gas intensity across the world. The choice of the other variables such as natural resource rents and technological innovation also based on the previous empirical works. We consider 61 countries based on the availability of data and divide the countries into different income groups according to the World Bank classification. We use several other independent variables such as quality of governance, climate change mitigation law and access to electricity. We apply two-step system GMM technique for the full sample and one step system GMM for the income groups. The results depict that reducing consumption inequality increases GHG emissions all over the world. Natural resource rents and technological innovation helps to increase GHG emission. On the other hand, access to electricity has a negative impact on GHG emissions, whereas climate change mitigation law has an opposite impact on GHG emission intensity. The results vary for the income groups. Policy implications are suggested based on the outcome. [ABSTRACT FROM AUTHOR]

Consumption inequality may impede economic development and hinder the achievement of common prosperity. Using three waves of the China Family Panel Studies from 2014 to 2018, this paper investigated the impact of e‐commerce on consumption inequality, as measured by the Kakwani index. The results indicate that e‐commerce can reduce household consumption inequality. A mechanism analysis shows that e‐commerce can narrow household income inequality, increase the purchasing power of low‐income households, and promote the consumption of households with limited access to offline markets, thereby reducing the consumption gap. A heterogeneity analysis suggests that the positive role of e‐commerce in reducing consumption inequality can be more significant among vulnerable households, such as households with elderly members and less‐educated households. E‐commerce can have varying impacts on consumption inequality across different subcategories of household expenditure, with the greatest impact seen in entertainment and education expenditure. These findings provide new evidence for the role of e‐commerce in reducing consumption inequality in the digital economy, and the implications of this are discussed. [ABSTRACT FROM AUTHOR]

What transmission channels drive the effect of monetary policy on consumption inequality? This paper investigates this question with tractable Two‐Agent New Keynesian models with search‐and‐matching frictions and wage rigidities. I make a distinction between credit‐constrained households and unconstrained households and find that an expansionary monetary policy shock decreases consumption inequality between those two households through three channels: (i) the income composition channel, through fluctuations in labor and profit income; (ii) the savings redistribution channel, through fluctuations in real interest rate; and (iii) the earnings heterogeneity channel, through fluctuations in unemployment. The results are in line with the empirical evidence. [ABSTRACT FROM AUTHOR]

The current study analyses household consumption and income inequality using two levels; varying-intercept and varying-slope hierarchical linear model (HLM). The findings revealed higher levels of average consumption and income among urban as compared to rural households. On average, urban households face higher inequality in both income and consumption than rural households. Consumption dispersion is also much closer to income dispersion in rural stratum than urban strata. The novelty of the current study is the analysis of strata estimates deviations from overall National Panel Survey (NPS) sample estimates using two levels HLM. However, the application of more than two levels HLM that includes other socio-economic factors will significantly impact the methodology. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the effect of digital finance inclusion (DFI) on household consumption inequality in China. Based on the biennial panel data of China Household Finance Survey from 2015 to 2017 and the county-level DFI index, we empirically analyze the impact of DFI on consumption inequality by using fixed effect model. We find that the development of DFI can significantly reduce the consumption inequality among residents. This is partly because DFI can reduce the income inequality among residents. And the development of DFI has different marginal impact on consumption expenditure for different residents, thus leading to the reduction of the residents consumption gap. We also find that, compared to the extensive usage and the degree of digitization, the intensive usage of DFI has larger effects on lowering consumption inequality. In addition, the effects of DFI on consumption inequality have significant heterogeneity, and they are relatively larger for residents in eastern regions, and for households with low debt-to-income ratios and for individuals with compulsory education. Therefore, it is necessary to attach importance to supporting construction in the western region when coordinating the development of digital inclusive finance. It is important to strengthen policy preference for residents with lower education levels in terms of school compulsory education and community public welfare education. Meanwhile, when developing the digital financial inclusion, we should focus on controlling the household debt-to-income ratio to prevent excessive debt growth. [ABSTRACT FROM AUTHOR]

This paper reexamines the cyclical behaviors of price markup, profits, and labor share when responding to monetary and fiscal policy shocks in a two‐agent, two‐branch, and two‐sector model. We show that this framework is able to generate procyclical price markup and profits, and countercyclical labor share conditional on expansionary policy shocks. These results are in line with empirical evidences but at odds with the prediction of canonical New Keynesian models. As the share of nondurables in total production decreases, the results reverse. This finding implies expansionary monetary and fiscal policies widen the income inequality between Ricardian households and collateral‐constrained households. [ABSTRACT FROM AUTHOR]

The role of economic uncertainty on macroeconomic fluctuations has been studied extensively in the empirical literature; however, its distributional effects have received little attention. This paper attempts to fill this gap by investigating whether macroeconomic uncertainty affects income, wage, and consumption inequality in the United Kingdom. Our findings suggest that measures of inequality fall significantly to a macroeconomic uncertainty shock. Households in the middle and right tail of the income distribution appear to be more adversely affected relative to ones in the left tail. Income composition and households indebtedness explain a large part of the heterogeneous response. Uncertainty also appears to account significantly for the variation of income and consumption inequality. [ABSTRACT FROM AUTHOR]

This paper uses a dataset of 75 countries covering 1960-2010 to examine whether foreign aid has any effect on consumption inequality. The variable of assistance is split into grants and loans – the central hypothesis being different non-linear impact of each on inequality – with the impact of loans being hump-shaped and grants “U”-shaped. The results corroborate the direction and the type of impact that foreign assistance has on inequality. In addition, the outcomes for quartile data subsets show that the relationships between foreign assistance and inequality differ depending on a country’s GDP per capita. However, the hypothesis regarding the influence of coup d’états hasn’t been confirmed.

In this paper, we study the distributional effect of a progressive wealth tax. We show that there exists a threshold level below which raising the upper bound of the tax rate reduces inequality of wealth and consumption in the long run. Such a threshold increases when the difference between the rate of return on wealth and the growth rate, r − g , and the level of wealth inequality relative to that of labour income inequality rise. The room for raising the tax progressivity to reduce inequality is restricted if r − g falls and labour income inequality rises relatively to wealth inequality. [ABSTRACT FROM AUTHOR]

This paper develops a simple theoretical model and offers empirical evidence of urban segregation on consumption inequality between rural‐to‐urban migrants and urban residents. Our analyses are based on the 2007 China Household Income Project (CHIP) and the 2017 China Migrants Dynamics Survey (CMDS) data. Results obtained from propensity score matching and 2SLS methods show that urban segregation caused by the hukou system leads to significant consumption inequality between rural‐to‐urban migrants and urban residents. Hukou conversion matters for improving migrants' consumption, but when or how hukou was transferred makes little difference. Besides, we find that the disparity in consumption between rural‐to‐urban migrants and urban residents is more prominent in the higher‐income group or in cities with stricter restrictions on hukou conversion. Finally, our results are robust to a series of sensitivity checks. [ABSTRACT FROM AUTHOR]

Does disparity in income and consumption incite terrorism in Africa? To answer this important question, we investigate the empirical linkages between inequality and terrorism by separately regressing income and consumption inequalities on four indicators of terrorism: domestic, transnational, unclear, and total over the period 1980–2012. Employing a negative binomial regression across a panel dataset covering 46 African economies, the following findings are established. First, both income and consumption inequalities have decreasing impacts on all terrorism measures—with the exception of uncertain terrorism (the impact of which is negligible). Second, both income and consumption inequalities exert more statistical influence on transnational terrorism than domestic terrorism. Third, income inequality exerts more statistical weight on terrorism measures than consumption inequality across the model specifications. Last, the non-trivial impact of confounding variables—such as the lagged value of terrorism, surface areas, and conflicts—are validated across the terrorism models. In line with these empirical outcomes, policy implications and suggestions for further studies are offered. [ABSTRACT FROM AUTHOR]

This study presents estimates of multidimensional household inequality in Australia from 2001 to 2017. Earnings inequality declines through the sample, while disposable income, non-durable consumption expenditures, food expenditures and net worth inequality exhibit relatively flat trends. The relatively flat trend for non-durable expenditures inequality, even over the life cycle, suggests households insure consumption against idiosyncratic shocks. Standard regression estimates of consumption growth against income shocks confirm this finding. Quantile regression estimates indicate households experiencing negative (positive) consumption growth have more sensitivity to negative (positive) income shocks than households with positive (negative) consumption growth, but coefficient estimates have small magnitudes, confirming standard tests. [ABSTRACT FROM AUTHOR]

This work shows that the U.S.-Sino diverse links between income and consumption inequality have to do with their different development levels and policy orientations. Foreign trade, financial markets, and capital flows are used for consumption smoothing in the U.S. but for economic growth in China. Other smoothing schemes are better developed in the U.S. than in China. As a result, income and consumption inequalities are linked loosely in the U.S. burdened with an external deficit but closely in China faced with a persist surplus. [ABSTRACT FROM AUTHOR]

The paper examines the effect of agricultural productivity and other macroeconomic variables on consumption inequality in Nigeria. The ARDL approach to cointegration and error correction modeling was employed for the analysis. The study found that agricultural productivity and domestic investment reduce consumption inequality in the long run. FDI was also found to be associated with reduction in consumption inequality in the short run, but its long run effect was not statistically significant. Based on the evidence, the study recommends as measure to reduce consumption inequality in the country, increased investment in the agriculture sector to enhance its productivity, and improvement in the investment environment through infrastructural development, including energy, road, telecommunication infrastructure, favourable, tax policies, enhanced national security, etc. to encourage domestic investment and enhance the attractiveness of the economy to FDI.

Growing research shows that information technology accelerates economic growth and development, but the effect of Internet penetration on inequality is less well documented, especially about consumption inequality. On the one hand, Internet lowers transaction costs and offers equal access to online products especially beneficial for remote and poor populations, seemingly reducing inequality. On the other hand, uneven access to the Internet may increase divergences. This study examines the relationship between Internet penetration and consumption inequality. Using data from 155 counties available from 2010 to 2016 China Family Panel Studies, this study examines whether Internet penetration potentially impacts consumption inequality considering regional heterogeneity. Based on fixed‐effect models and the two‐stage least squares regressions, results suggest the Internet penetration may increase consumption inequality measured by the Gini index. Furthermore, higher education and over a certain Internet penetration rate buffer the positive impact of the Internet. In some cases, the Internet has smaller positive or even negative impacts on consumption inequality in regions with higher education levels and over threshold penetrations. [ABSTRACT FROM AUTHOR]

During the 1990s, social structure of accumulation (SSA) theorists identified the solidification of a neoliberal SSA that included a capital-citizen accord based on 'managing the discontent of the losers'. This created social stability by reconciling working households to material hardships emanating from the neoliberal labour market by means of either coercion or non-economic distraction. This paper argues that there was, in fact, a material basis to the neoliberal capital-citizen accord, including the ability of households to accumulate debt in order to limit the growth of consumption inequality arising from burgeoning income inequality. The material basis of the capital-citizen accord broke down during the financial crisis of 2007–2009, destabilizing the accord itself. The result is that the neoliberal SSA is now threatened by rising populism. The outcomes of this process are highly uncertain – a key characteristic of the periods of inter regnum that separate successful SSAs. [ABSTRACT FROM AUTHOR]

In this paper, we look at the evolution of consumption and wage inequality from 1980 to 2016 in the US. We use data from the Consumer Expenditure Survey (CEX) and the Current Population Survey (CPS) to look at differences in consumption and wages across groups in the population defined by educational attainment of the household head and year‐of‐birth cohort. We show that the results obtained by Attanasio and Davis (1996) for non‐durable consumption still hold in more recent decades. In addition to non‐durable consumption and services, we look at inequality measured in terms of expenditure on and stock of vehicles. The advantages of looking at these measures are that information on cars is typically measured more accurately than other components of expenditure and consumers are more likely to react by adjusting their stock of vehicles on the basis of long‐term expectations about their economic prospects. [ABSTRACT FROM AUTHOR]

• Digital finance reduces consumption inequality in rural areas. • Impact of digital finance on reducing developmental consumption inequality. • Digital finance mitigates consumption inequality by addressing income inequality. The advent of digital finance has mitigated financial constraints for residents in rural areas, offering a new avenue to reduce consumption inequality. This paper examines the relationship between the use of digital finance and consumption inequality based on data from the China Household Finance Survey. The results reveal that digital finance has a negative effect on consumption inequality, with a more significant impact on reducing developmental consumption inequality for families. The estimations of testing the potential mechanisms indicate that digital finance mitigates income disparities and heightens risk preferences, thereby reducing consumption inequality among rural residents. [ABSTRACT FROM AUTHOR]

Inequality of opportunity is defined as the difference in individuals' outcome systematically correlated with morally irrelevant pre-determined circumstances, such as ethnicity, socio-economic background, area of birth. This definition has been extensively studied by economists on the assumption that, in addition to being normatively undesirable, it can be related to low potentials for growth. However, empirical estimations of inequality of opportunity require accessing rich data sources, rarely available in poorer countries. In this paper, we exploit 13 consumption household surveys to evaluate inequality of opportunity in 10 Sub-Saharan African countries. According to our results, the portion of total inequality that can be attributed to exogenous circumstances is between 40% and 56% for the generality of countries. Our estimates are significantly higher than what has been found by previous studies. We detect a positive association between total consumption inequality and inequality of opportunity, and we study the different sources of unequal opportunities. The place of birth and the education of the father appear to exert the most relevant role in shaping inequality of opportunity in the region. [ABSTRACT FROM AUTHOR]

This paper studies the pro‐poor bias of trade policy in India by estimating the household welfare effects of removing the current protection structure. The elimination of a pro‐poor trade policy is expected to have a negative differential welfare effect at the low end of the distribution. The paper first constructs trade restrictiveness indexes for household consumption items and industries using both tariffs and non‐tariff barriers. The results indicate that Indian trade policy is regressive through the expenditure channel as it disproportionately raises the cost of consumption for poorer households, while it is progressive through the earnings channel. Based on the net welfare effects, the elimination of the current trade protection structure is estimated to reduce inequality. These results indicate that a trade policy that is progressive through the earnings channel may induce a price effect that is regressive through the expenditure channel. [ABSTRACT FROM AUTHOR]

Government spending shocks have substantially different effects on consumers across the income distribution: consumption increases for the poor whereas it decreases for the rich in response to a rise in government expenditure. I shed light on this issue by incorporating a progressive tax scheme and productive public expenditure into a heterogeneous agent model economy with indivisible labor. The model economy is able to successfully match aggregate and disaggregate effects of government spending shocks on consumption. When the government increases its spending and accompanies it by a rise in tax progressivity, the poor are employed and increase their consumption since after‐tax wage rates increase while the rich decrease their consumption because of a fall in after‐tax wage rates. [ABSTRACT FROM AUTHOR]

Aim: This paper makes a theoretical and Empirical Study on the relationship between monetary policy and urban-rural economic inequality from the perspective of modern ecology. Methods: Constructed a structural vector auto-regression model containing variables of consumption inequality and income inequality. Results: The change of ecological environment will lead to the change of income gap between urban and rural residents, which lags behind the change of monetary policy and has a relatively short response time to the change of policy. Conclusion: Considering the ecological factors, the impact of monetary policy on economic inequality has not only direct transmission mechanism, but also indirect transmission mechanism. [ABSTRACT FROM AUTHOR]

Abstract: Population ageing has significant economic and social costs, and this paper studies its impacts on inequality, both theoretically and empirically. First, we build a two‐period overlapping generation model with uncertain lifetime and find that population ageing has the overall effect of increasing income and consumption inequality within the society. For empirical analysis, we use household data from China Health and Nutrition Survey to assess the age effect on income and consumption inequality in China, and confirm the results predicted by the theoretical model. [ABSTRACT FROM AUTHOR]

Using income from nationally representative household surveys and district as the lowest level of aggregation, we examine the role of spatial factors in determining income inequality in India. In both rural and urban India, we find that within-district income differences account for majority of the income inequality in 2011. Moreover, between-state income differences are more important in explaining between-district inequality in rural India. In contrast, in urban areas it is the within-state income differences that play a more important role in explaining the between-district inequality. We find significantly smaller level of inequality but similar trends using the consumption expenditure. Finally, using data for 1993 and 2011, we find that although majority of the income inequality in rural India is explained by within-district income difference in both years, over time the share of between-district differences has increased and they account for a third of the total increase in rural income inequality between 1993 and 2011. [ABSTRACT FROM AUTHOR]

Using 30 years of the South Korean household income and expenditure surveys (HIES) from 1982 to 2011, this paper argues that Korea experienced significantly differing generational trends in consumption and income inequality when taking demographic changes related to population aging into account. While income inequality stagnated or slightly rose over the past two generations, consumption inequality in fact declined. These antagonistic trends are likely due to better access of poorer households to financial markets as well as the gradual expansion of the welfare state. In the absence of appropriate policies, rapid population aging will substantially increase overall inequality in the future. [ABSTRACT FROM AUTHOR]

The importance of strengthening human development (HD) achievements in a country to augment its growth potential is well known in development literature. Several initiatives to enhance the HD level have been introduced in India in the recent past. However, HD achievements still vary significantly across Indian states. The current paper attempts to observe the HD achievements for 28 Indian states over the last three decades and analyses the impact of economic growth on HD achievements. The methodology adopted in the National Human Development Report 2001 has been applied for constructing the Human Development Index (HDI) in the current analysis, and the indices for rural and urban areas within each state are calculated separately. The estimated results indicate that per capita GSDP (PCGSD) growth significantly and positively influence HD growth, but the inter-linkage between the two is weakening over time. The mutual existence of vicious and virtuous cycles in HDI-PCGSDP relationship for Indian states is also confirmed. The paper concludes that policy coordination between multiple initiatives to fuel economic growth in states is required for augmenting HDI. In addition, improvement of 'ease of doing business indicator' across states as well as efficient adoption of schemes like MGNREGA are going to be crucial. [ABSTRACT FROM AUTHOR]

While the majority of inequality research focuses on income metrics to measure changes in inequality, a growing number of scholars argue that consumption is a better metric for measuring disparities in an individual's contemporaneous well-being. This study adds to a growing literature on consumption inequality by testing how consumption inequality varies across consumption categories and changes overtime. We find that overall consumption inequality declined since the mid-2000s before a recent uptick, which can be mostly explained by decreasing gaps in transportation expenditures on vehicle purchases. At the same time, the recent decline in overall consumption inequality disguises growing inequalities in health and education expenditures (human capital investments). The rising inequality in human capital investments is of particular concern as it can predict future increases in inequality. [ABSTRACT FROM AUTHOR]

The paper uses data from the consumer expenditure surveys to demonstrate that the mode of collection is important for the analysis of consumption data. We first show that population figures obtained with diaries markedly differ from figures obtained by using recall questions. We then exploit multiple measurements of food expenditure to identify the effects of the mode of collection on the distribution of reported consumption. Finally, we show how to combine information from multiple reports to obtain a single measure of total expenditure in consumer expenditure surveys. The paper concludes by offering guidelines for empirical analyses based on these data, and by providing an application of the methods proposed to the measurement of inequality and wellbeing. [ABSTRACT FROM AUTHOR]

The relationship between the two sustainable development goals (SDGs)–inequality reduction and carbon emission reduction is critical for governments formulating and implementing environmental and redistribution policies. This study uses micro survey data from the China Family Panel Studies (CFPS) to conduct a counterfactual analysis that decomposes and quantifies the net effects of consumption growth, redistribution, and changing patterns of consumption on household carbon emissions. The counterfactual approach helps to overcome the endogeneity concerns. The findings of our study convey a profoundly important and alarming message: the redistribution measures for inequality reduction may increase household carbon emissions. The findings attest to the need for Chinese policymakers to seriously consider the trade-off between inequality reduction and emission reduction, particularly in certain regions in China. To address the trade-off, one key measure is to encourage low-carbon lifestyles and consumption patterns to ensure that the benefits gained by poorer households from redistribution measures will not translate into higher emissions. • A counterfactual method to decompose the effects of consumption on carbon emissions. • There is a tradeoff between inequality reduction and carbon emission reduction. • A greener consumption structure could reduce household carbon emissions. [ABSTRACT FROM AUTHOR]

Using four rounds (1999, 2002, 2005 and 2008) of the Korean Labor and Income Panel Study, the present paper examines determinants of household income and consumption levels and inequalities. Unconditional as well as conditional stochastic dominance tests are performed by year, by household heads' characteristics (age, education, gender, health, marital status and occupation) and by household characteristics (household type, household size and degree of urbanization). Mean least squares regression techniques are used to predict conditional expectations. The residuals containing effects for each characteristic conditional on the remaining characteristics are then used for the stochastic dominance analysis employing extended Kolmogorov- Smirnov tests of first-order and second-order dominance in distribution of income and consumption. The results provide a detailed and up-to-date picture of inequality and poverty by subgroup in Korea, which helps in targeting particularly vulnerable groups. While inequality in disposable income is found to be substantial, consumption inequality is less substantial. Households headed by the elderly, the uneducated, the divorced, the widowed, females, and those with health problems are found to be the most vulnerable groups. [ABSTRACT FROM AUTHOR]

The impact of fully anticipated inflation is systematically studied in heterogeneous agent economies with an endogenous labor supply and portfolio choices. In stationary equilibrium, inflation nonlinearly alters the endogenous distributions of income, wealth, and consumption. Small departures from zero inflation have the strongest impact. Three features determine how inflation impacts distributions and welfare: financial structure, shock persistence, and labor supply elasticity. When agents can self-insure only with money, inflation reduces wealth inequality but may raise consumption inequality. Otherwise, inflation reduces consumption inequality but may raise wealth inequality. Given persistent shocks and an inelastic labor supply, inflation may raise average welfare. The results hold when the model is extended to account for capital formation. [ABSTRACT FROM AUTHOR]

The article studies the dynamics of chronic poverty in rural India. The article attempts to analyse the factors influencing the incidence and mobility of poverty and the changes in the influence of these factors over time. This article uses the household panel survey data collected by NCAER. It examines whether there has been change in the influence of factors such as village level infrastructure, household size and composition, and economic growth on poverty dynamics in different periods of time. The impact of a number of factors changes over time implying that the strategies for poverty reduction would have to take into account the changing economic environment. The article further presents an analysis of growth rate of per capita expenditure for the same set households to analyse the extent of consumption growth, which is also an indicator of poverty reduction for rural India. Copyright © 2011 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]