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Measuring Inequality Using Electronic Payment Data

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  • Carlos A. Piccioni
  • Saulo B. Bastos
  • Daniel O. Cajueiro

Abstract

We measure municipal-level inequality based on electronic payment data, specifically credit card and Pix payments, which we consider as a proxy for consumption. Our consumption inequality measure is correlated with income inequality calculated using census data, and it exhibits similar regional behavior, although it indicates higher inequality on average, given the nature of the data used. As an application, we assess the relationship between our inequality measure and the Economic Complexity Index (ECI) at the municipal level. We find a negative relationship, indicating that higher economic complexity is associated with lower consumption inequality. Additionally, the relationship is non-linear: with increasing ECI, the influence on consumption inequality becomes more significant.

Suggested Citation

  • Carlos A. Piccioni & Saulo B. Bastos & Daniel O. Cajueiro, 2024. "Measuring Inequality Using Electronic Payment Data," Working Papers Series 608, Central Bank of Brazil, Research Department.
    • Handle: RePEc:bcb:wpaper:608
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    References listed on IDEAS

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