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The Impact of Income Dispersion on Consumption Expenditures Distribution of Iranian Urban and Rural Households During
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Mohammad Hasan Fotros *   , Reza Maboudi |
| , fotros@basa.ac.ir |
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Abstract: (9467 Views) |
| This paper investigates the inequality of consumption expenditures caused by transference of income dispersion to consumption expenditures distribution. In order to calculate the rate of income inequality and consumption expenditures inequality the Lorenz ratio and the specific concentration‘s ratio have been used respectively. Iranian Households’ Income and expenditures data during 1966 - 2009 has been reviewed in this paper. In order to analyze the relationships between variables we have employed panel data methodology. The results of Panel Auto Regressive Distributed Lag (Panel ARDL) test show that there is a long-term relationship between income and consumption expenditures distribution. Estimations show that income inequality has significant impact on consumption expenditures distribution. The results also indicate that all of the fluctuations of income inequality do not transmit into the consumption expenditures distribution. So, consumption has a smoother behavior than income during the time. These results are in accordance with macroeconomics debate in consumption. |
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| Keywords: Consumption Expenditure Inequality, Income Inequality, Lorenz Ratio of Income, Specific Concentration Ratio. |
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Type of Study: Research |
Subject:
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