Income shocks or insurance - what determines consumption inequality? / Johannes Ludwig
VerfasserLudwig, Johannes In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBochum [u.a.] : RWI, 2015
Umfang33 S. : graph. Darst.
SerieRuhr economic papers ; 550
SchlagwörterUSA In Wikipedia suchen nach USA / Einkommensverteilung In Wikipedia suchen nach Einkommensverteilung / Verbraucherverhalten In Wikipedia suchen nach Verbraucherverhalten / Geschichte 1980-2010 In Wikipedia suchen nach Geschichte 1980-2010 / Online-Publikation In Wikipedia suchen nach Online-Publikation
URNurn:nbn:de:hbz:6:2-47830 Persistent Identifier (URN)
 Das Dokument ist frei verfügbar.
Income shocks or insurance - what determines consumption inequality? [0.49 mb]

Contrary to the implications of economic theory, consumption inequality in the US did not react to the increases in income inequality during the last three decades. This paper investigates if a change in the type of income inequality - from permanent to transitory - or a change in the ability to insure income shocks is responsible for this. A measure of household consumption is imputed into the Panel Study of Income Dynamics to create panel data on income and consumption for the period 1980-2010. The minimum distance investigation of covariance relationships shows that both explanations work together: the share of transitory shocks increases over time, but the capability to insure permanent and transitory shocks to income also improves. Together, these phenomena can explain the lack of an increase in consumption inequality.