Has Consumption Inequality Mirrored Wealth Inequality in the Survey of Consumer Finances?

Brant Abbott and Robin Brace ()

No 1427, Working Paper from Economics Department, Queen's University

Abstract: A method to impute consumption expenditure inequality between wealth groups in the Survey of Consumer Finances is provided, allowing for measurement error that is correlated with income and wealth. Identification is derived from observing food at home and away, which are relative necessities and luxuries, respectively. The gap in expenditure between top and bottom wealth quintiles increased by 50% between 2004 and 2013, indicating that increases in wealth inequality have passed through to consumption.

Keywords: Inequality; Wealth; Income; Consumption (search for similar items in EconPapers)
JEL-codes: D31 E21 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2020-03
New Economics Papers: this item is included in nep-des, nep-exp and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Has consumption inequality mirrored wealth inequality in the Survey of Consumer Finances? (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1427

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