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National and international income dispersion and aggregate expenditures

Author

Listed:
  • Carmen Fillat

    (Department of Applied Economics and Economic History. University of Zaragoza.)

  • Joseph Francois

    (Tinbergen Institute Rotterdam and Center for Economic Policy Research-CEPR.)

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.

Suggested Citation

  • Carmen Fillat & Joseph Francois, 2004. "National and international income dispersion and aggregate expenditures," Documentos de Trabajo dt2004-06, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    • Handle: RePEc:zar:wpaper:dt2004-06
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    References listed on IDEAS

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    7. Hertel, Thomas W. & Maros Ivanic & Paul Preckel & John Cranfield, 2004. "The Earnings Effects of Multilateral Trade Liberalization: Implications for Poverty in Developing Countries," GTAP Working Papers 1208, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Atkinson, A B, 1997. "Bringing Income Distribution in from the Cold," Economic Journal, Royal Economic Society, vol. 107(441), pages 297-321, March.
    9. Francois, Joseph F & Kaplan, Seth, 1996. "Aggregate Demand Shifts, Income Distribution, and the Linder Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 244-250, May.
    10. Thomas W. Hertel & Maros Ivanic & Paul V. Preckel & John A. L. Cranfield, 2004. "The Earnings Effects of Multilateral Trade Liberalization: Implications for Poverty," The World Bank Economic Review, World Bank, vol. 18(2), pages 205-236.
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    Cited by:

    1. Patricia Bachiller & Mar�a Jos� Arcas, 2006. "Performance and capital structure of privatized firms in the european union," Documentos de Trabajo dt2006-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    2. Raúl Serrano & Vicente Pinilla, 2014. "New directions of trade for the agri-food industry: a disaggregated approach for different income countries, 1963–2000," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-22, December.
    3. Jos� Alberto Molina & Juan Carlos Campa�a & Raquel Ortega, 2016. "Time spent on cultural activities at home in Spain: Differences between wage-earners and the self-employed," Documentos de Trabajo dt2016-01, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    4. Pilar Bernal & Juan P. Maicas & Pilar Vargas, 2016. "Exploration, exploitation and innovation performance: Disentangling environmental dynamism," Documentos de Trabajo dt2016-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    5. Lilas Demmou, 2010. "Le recul de l’emploi industriel en France entre 1980 et 2007. Ampleur et principaux déterminants : un état des lieux," Économie et Statistique, Programme National Persée, vol. 438(1), pages 273-296.
    6. Silvia Sacchetti & Ermanno C. Tortia & Francisco J. L�pez Arceiz, 2016. "Human resource management practices and organizational performance. The mediator role of immaterial satisfaction in Italian Social Cooperatives," Documentos de Trabajo dt2016-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    7. Lilas Demmou, 2007. "Technical progress in North and welfare gains in South under nonhomothetic preferences," Working Papers halshs-00588310, HAL.
    8. Ra�l Serrano & Marta Fern�ndez-Olmos & Vicente Pinilla, 2015. "International diversification and performance in agri-food firms," Documentos de Trabajo dt2015-01, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    9. Angulo, Ana & Burridge, Peter & Mur, Jesús, 2018. "Testing for breaks in the weighting matrix," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 115-129.

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    More about this item

    Keywords

    income distribution; aggregate demand; demand system estimation; Engel curves;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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