Consumption inequality and income uncertainty

• 成果类型: Article
• 署名作者: Blundell, R; Preston, I
• 署名单位: University of London; University College London; University of London; London School Economics & Political Science
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1162/003355398555694
• 发表日期: 1998
• 页码: 603-640
• 关键词: life-cycle; intertemporal substitution; precautionary savings; welfare analysis

摘要

This paper places the debate over using consumption or income in studies of inequality growth in a formal intertemporal setting. It highlights the importance of permanent and transitory income uncertainty in the evaluation of growth in consumption inequality. We derive conditions under which the growth of variances and covariances of income and consumption can be used to separately identify the growth in the variance of permanent and transitory income shocks. Household data from Britain for the period 1968-1992 are used to show a strong growth in transitory inequality toward the end of this period, while younger cohorts are shown to face significantly higher levels of permanent inequality.