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Keep it real: Measuring real inequality using survey data from developing countries

Ulrik Beck

No wp-2015-133, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper investigates how two effects drive wedges between nominal and real inequality estimates. The effects are caused by (i) differences in the composition of consumption over the income distribution coupled with differential inflation of consumption items; and (ii) quantity discounting effects for the non-poor. Household-specific deflators are estimated using 15 surveys collected in six countries in the period 1999-2011. In some countries (Mozambique, Tanzania, Malawi, and Pakistan), nominal inequality is lower than real inequality.

Keywords: Consumption; Equality and inequality; Poverty measurement (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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