Policy analysis frequently requires estimates of aggregate (or mean) consumer elasticities. However, estimates are often made incorrectly, based on elasticity calculations at mean income. We provide in this paper an overall integrated analytical framework that encompasses these biases and...

Errors introduced by using aggregate data in estimating a consumer demand model have long been a concern. We study the effects of such errors on elasticity estimates derived from AIDS and QUAIDS models. Based on a survey of published articles, a generic parameterization of the income...

We specify the domain in the income distribution that includes the people to whom income transfers will not increase inequality in that income distribution. Inspired by Sen's (1973, 1997) characterization of the Gini coefficient as a ratio between a measure of aggregate income-based "depression"...

Following Sen's (1973) characterization of the Gini coefficient as a ratio between a measure of aggregate income-based stress ("depression" in Sen's terminology) and aggregate income, we transform the Gini coefficient into a social welfare function rather than having the Gini coefficient feature...

Errors introduced by using aggregate data in estimating a consumer demand model have long been a concern. We study the effects of such errors on elasticity estimates derived from AIDS and QUAIDS models. Based on a survey of published articles, a generic parameterization of the income...

Inflation is often assumed to affect all people in the same way. In practice, differences in spending patterns across households and differences in price increases across goods and services lead to unequal levels of inflation for different households. In this paper, we measure the degree of...

We examine the extent to which declining manufacturing employment may havecontributed to increasing inequality in advanced economies. This contribution is typicallysmall, except in the United States. We explore two possible explanations: the high initialmanufacturing wage premium and the high...

We examine the problem of measuring the extent to which students with different income levels attend separate schools. Unless rich and poor attend the same schools in the same proportions, some segregation will exist. Since income is a continuous cardinal variable, however, the rich-poor...

This paper aims to study the impacts of financial development, urbanization, and globalization on income inequality in the People's Republic of China. It applies the regression-based inequality decomposition approach on a panel dataset, which is aggregated from a unique database of financial...