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Inequality in Consumption Equivalence

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  • Christian Zimmermann

    (University of Connecticut)

Abstract

This paper argues that the conventional inequality measures based on income or wealth give only a partial picture of poverty and the distribution of opportunities. I show how using the consumption equivalence from a value function is more useful, as it better captures the persistence of income and poverty. A series of simulation demonstrates the nuances between different measures. Finally, measures based on empirical work from several countries are calculated and compared.

Suggested Citation

  • Christian Zimmermann, 2012. "Inequality in Consumption Equivalence," 2012 Meeting Papers 1002, Society for Economic Dynamics.
    • Handle: RePEc:red:sed012:1002
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    References listed on IDEAS

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    1. Matthew Brzozowski & Martin Gervais & Paul Klein & Michio Suzuki, 2010. "Consumption, Income, and Wealth Inequality in Canada," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 52-75, January.
    2. Jonathan Heathcote & Fabrizio Perri & Giovanni L. Violante, 2010. "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 15-51, January.
    3. Richard Blundell & Ben Etheridge, 2010. "Consumption, Income and Earnings Inequality in Britain," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 76-102, January.
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