Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181582
Authors: 
Güner, Eren
Weichenrieder, Alfons
Year of Publication: 
2018
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Inequality III No. E04-V2
Abstract: 
This paper studies the distributional consequences of a systematic variation in expenditure shares and prices. By using European Union Household Budget Surveys and Harmonized Index of Consumer Prices data, we construct household-specific price indices and reveal the existence of a pro-rich inflation in Europe. Particularly, over the period 2001-15, the consumption bundles of the poorest deciles in 25 European countries have on average become 10.5 percentage points more expensive than those of the richest decile. We find that ignoring the differential inflation across the distribution underestimates the change in the Gini (based on consumption expenditure) by up to 0.03 points. Cross-country heterogeneity in this change is large enough to affect the ranking of the countries in inequality measures.
Subjects: 
Inequality
Gini
EU countries
income dependent inflation
JEL: 
D31
Document Type: 
Conference Paper

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