ABSTRACT
Consumption inequality is a matter of great concern. However, measurement error always appears when doing so. To handle this, this paper uses a method based on Engel expenditure elasticity proposed by Aguiar and Bils. The results show that consumption inequality in rural China based on Engel expenditure elasticity is smaller than the income inequality and consumption inequality calculated by the ratio of high-income to low-income households.
Acknowledgment
We would like to thank Xi Zhu and the anonymous reviewers for constructive comments.
Disclosure statement
The authors declare no conflict of interest.
Notes
1 In 2005, the central government allocated one trillion yuan to subsidize local governments. https://news.sina.com.cn/c/2006-03-07/11108382003s.shtml..
2 NDRC: The central government’s transfer payments show a preference for the central and western regions. https://www.chinanews.com.cn/cj/hgjj/news/2008/03-03/1179939.shtml..
3 China’s economic investment will focus on the west.http://www.ocn.com.cn/info/201308/jingji245210954.shtml.