dc.contributor.author | Almås, Ingvild | |
dc.contributor.author | Kjelsrud, Anders Grøn | |
dc.date.accessioned | 2018-03-08T11:28:41Z | |
dc.date.available | 2018-03-08T11:28:41Z | |
dc.date.created | 2017-06-27T13:50:37Z | |
dc.date.issued | 2017 | |
dc.identifier.citation | World Development. 2017, 97 102-121. | |
dc.identifier.issn | 0305-750X | |
dc.identifier.uri | http://hdl.handle.net/11250/2489476 | |
dc.description.abstract | It is well known that consumption patterns change with income. Relative price changes would therefore affect rich and poor consumers differently. Yet, the standard price indices are not income-specific, and hence, they cannot account for such differences. In this paper, we study consumption inequality in India, while fully allowing for non-homotheticity. We show that the relative price changes during most of the period from 1993 to 2012 were pro-poor, in the sense that they favored the poor relative to the rich. As a result, we also find that conventional measures significantly overstate the rise in real consumption inequality during this period. The main lesson from our study is the importance of accounting for non-homotheticity when measuring inequality. The price index literature has, as of yet, paid relatively little attention to this. In our application, however, it turns out that the allowance for non-homotheticity is quantitatively much more important than much discussed adjustments, such as those for substitution in consumption. | |
dc.language.iso | eng | |
dc.title | Rags and Riches: Relative Prices, Non-Homothetic Preferences, and Inequality in India | |
dc.type | Peer reviewed | |
dc.type | Journal article | |
dc.description.version | acceptedVersion | |
dc.source.pagenumber | 102-121 | |
dc.source.volume | 97 | |
dc.source.journal | World Development | |
dc.identifier.doi | 10.1016/j.worlddev.2017.04.001 | |
dc.identifier.cristin | 1479223 | |
dc.relation.project | Andre: TCLNHH | |
dc.relation.project | Norges forskningsråd: 250415 | |
cristin.unitcode | 191,30,0,0 | |
cristin.unitname | Institutt for samfunnsøkonomi | |
cristin.ispublished | true | |
cristin.fulltext | postprint | |
cristin.qualitycode | 2 | |