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"We revisit to what extent the increase in income inequality over the last 30 years has been mirrored by consumption inequality. We do so by constructing two alternative measures of consumption expenditure, using data from the Consumer Expenditure Survey (CE). We first use reports of active savings and after tax income to construct the measure of consumption implied by the budget constraint. We find that the consumption inequality implied by savings behavior largely tracks income inequality between 1980 and 2007. Second, we use a demand system to correct for systematic measurement error in the CE's expenditure data. Specifically, we consider trends in the relative expenditure of high income and low income households for different goods with different income (total expenditure) elasticities. Our estimation exploits the difference in the growth rate of luxury consumption inequality versus necessity consumption inequality. This "double-differencing,'' which we implement in a a regression framework, corrects for mis-measurement that can systematically vary over time by good and income group. This second exercise indicates that consumption inequality has closely tracked income inequality over the period 1980-2007. Both of our measures show a significantly greater increase in consumption inequality than what is obtained from the CE's total household expenditure data directly"--National Bureau of Economic Research web site

PDFs, CDFs, quantile functions, and Lorenz curves -- Summary inequality measures -- Choices of inequality measures -- Relative distribution methods -- Inference issues -- Analyzing inequality trends -- An illustrative application: inequality in income and wealth in the United States, 1991-2001

"Coming together from across several disciplines, the contributors to this book reflect on the considerable problem of inequality in Zambia, comparing it with other countries both in the region and more broadly. The World Bank consistently ranks Zambia among the countries with the highest levels of poverty and inequality globally, but the problem is not widely studied, and the studies that do exist tend to focus solely on economic measures of inequality. This book uses a multidimensional analysis of inequalities, highlighting the ways in which certain social groups and geographical locations are more likely to suffer multiple inequalities. It investigates key issues around poverty, healthcare, income, law, disability, and power inequalities. Particularly showcasing the work of local researchers, this book will be of interest to researchers of African studies, development, economics and politics."