Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2004-08-24
Number: 04-093/2
Author-Name: Carmen Fillat
Author-Email: cfillat@unizar.es
Author-Workplace-Name: Universidad de Zaragoza
Author-Name: Joseph Francois
Author-Email: francois@few.eur.nl
Author-Workplace-Name: Faculty of Economics, Erasmus Universiteit Rotterdam
Title: National and International Income Dispersion and Aggregate Expenditures
Abstract: 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.
Classification-JEL: D31; D12; D63; C68
Keywords: income distribution aggregate demand demand system estimation Engel curves
File-Url: https://papers.tinbergen.nl/04093.pdf
File-Format: application/pdf
File-Size: 466425 bytes
Handle: RePEc:tin:wpaper:20040093