Research on Inequality of Household Consumption and Social Welfare from the Perspective of Household Non-medical Expenditure

Volume 6, Issue 2, April 2021     |     PP. 25-51      |     PDF (342 K)    |     Pub. Date: April 25, 2021
DOI: 10.54647/economics79224    113 Downloads     5490 Views  

Author(s)

Huan Liu, School of Public Administration, Zhejiang University of Finance & Economics, Hang Zhou, China

Abstract
Background
In China, income inequality has been growing substantially over the last 40 years, especially after21st century.
Methods
By utilizing the inequality of consumption and social welfare, according to the differences in the composition of household consumption, medical consumption is used as the dividing standard to evaluate the inequality of non-medical consumption.
Results
First,in terms of overall social welfare, the deterioration of consumption distribution has replaced the growth of social welfare caused by economic growth, and the estimated results under non-medical consumption inequality are less different from the overall. Second, the income inequality is the main positive factor affecting consumption inequality, but participating in medical insurance has a negative impact on the consumption inequality of urban and rural residents.
Conclusion
From the perspective of consumption policy interventions, it is necessary to promote government departments to better safeguard the health maintenance of healthy or sub-healthy people through health management policies.

Keywords
household consumption;inequality;social welfare; economic growth; consumption distribution

Cite this paper
Huan Liu, Research on Inequality of Household Consumption and Social Welfare from the Perspective of Household Non-medical Expenditure , SCIREA Journal of Economics. Volume 6, Issue 2, April 2021 | PP. 25-51. 10.54647/economics79224

References

[ 1 ] Blundell, R. , & Etheridge, B. . (2010). Consumption, income and earnings inequality in britain. Review of Economic Dynamics, 13(1), 76-102.DOI：10.1016/j.red.2009.10.004
[ 2 ] Benjamin, D. , & Brandt, L. . (1999). Markets and inequality in rural china: parallels with the past. American Economic Review,89(2), 292-295.DOI：10.1006/exeh.1997.0683
[ 3 ] Morduch, J. , & Sicular, T. . (2010). Rethinking inequality decomposition, with evidence from rural china. Economic Journal, 112(476), 93-106.DOI：10.1111/1468-0297.0j674
[ 4 ] Khan, A. R. , & Riskin, C. . (1998). Income and inequality in china: composition, distribution and growth of household income, 1988 to 1995. The China quarterly, 154(6), 221-253.DOI：10.1017/S0305741000002022
[ 5 ] Kanbur, R. , & Zhang, X. . (1999). Which regional inequality? the evolution of rural-urban and inland-coastal inequality in china from 1983 to 1995. Journal of Comparative Economics, 27(4), 529-567.DOI：10.1006/jcec.1999.1612
[ 6 ] Khan, A. R. , Griffin, K. , & Riskin, C. . (1999). Income Distribution in Urban China during the Period of Economic Reform and Globalization.American Economic Review 89 (5): 296–300.DOI：10.2753/ces1097-1475330428
[ 7 ] Meng, X. . (2004). Economic restructuring and income inequality in urban china. Review of Income and Wealth, 50(3), 357-379.DOI：10.1111/j.0034-6586.2004.00130.x
[ 8 ] Knight, J. &Li.,S.. (2006). Three poverties in urban china. Review of Development Economics, 10(3), 367-387.DOI：10.1111/j.1467-9361.2006.00348.x
[ 9 ] Brzozowski, M. , Gervais, M. , Klein, P. , & Suzuki, M. . (2010). Consumption, income, and wealth inequality in canada. Review of Economic Dynamics, 13(1), 52-75.DOI：10.1016/j.red.2009.10.006
[ 10 ] Norris, S. , & Pendakur, K. . (2015). Consumption inequality in canada, 1997 to 2009. Canadian Journal of Economics/Revue canadienne d\"économique, 48(2), 773-792.DOI：10.1111/caje.12143
[ 11 ] Attanasio, O. , Berloffa, G. , Blundell, R. , & Preston, I. . (2010). From earnings inequality to consumption inequality. Economic Journal, 112(3), 52-59.DOI：10.1111/1468-0297.00030
[ 12 ] Cai,H.B.,Chen,Y.Y.,Zhou,L.A. (2010). Income and consumption inequality in urban china: 1992–2003. Economic Development and Cultural Change, 58(3), 385-413.DOI: 10.1086/650423
[ 13 ] Fisher, J. D. , Johnson, D. S. , & Smeeding, T. M. . (2013). Measuring the trends in inequality of individuals and families: income and consumption. American Economic Review, 103(3), 184-188.DOI: 10.1257/aer.103.3.184
[ 14 ] Heshmati, A. , & Rudolf, R. . (2014). Income versus consumption inequality in korea: evaluating stochastic dominance rankings by various household attributes. Asian Economic Journal,28(4), 413-436.DOI：10.1111/asej.12043
[ 15 ] Jappelli, T. , & Pistaferri, L. . (2010). Does consumption inequality track income inequality in italy?. Review of Economic Dynamics, 13(1), 133-153.DOI：10.1016/j.red.2009.11.001
[ 16 ] Fukushige,M.. (1996). On the determinants of households\" consumption inequality: an empirical analysis for japanese workers\" households. Applied Economics Letters,3(8), 541-544.DOI：10.1080/135048596356203
[ 17 ] F.Crossley,T.,and Pendakur,K..(2002).Consumption Inequality.Department of Economics working paper series, McMaster University.DOI：10.1257/aer.98.5.1887
[ 18 ] Attanasio, O. , & Pistaferri, L. . (2014). Consumption inequality over the last half century: some evidence using the new psid consumption measure.American Economic Review, 104(5), 122-126.DOI：http://dx.doi.org/10.1257/aer.104.5.122
[ 19 ] Mark Aguiar, M. B. . (2015). Has consumption inequality mirrored income inequality. American Economic Review,105(9), 2725-2756.DOI：10.1257/aer.20120599
[ 20 ] Abe, N. , & Yamada, T. . (2009). Nonlinear income variance profiles and consumption inequality over the life cycle. Journal of the Japanese & International Economies, 23(3), 344-366.DOI：10.1016/j.jjie.2009.04.001
[ 21 ] Lise, J. , Sudo, N. , Suzuki, M. , Yamada, K. , & Yamada, T. . (2014). Wage, income and consumption inequality in japan, 1981–2008: from boom to lost decades. Review of Economic Dynamics, 17(4), 582-612.DOI: 10.1016/j.red.2014.01.001
[ 22 ] Kaplanoglou, G. , & Rapanos, V. T. . (2016). Evolutions in consumption inequality and poverty in greece: the impact of the crisis and austerity policies. Review of Income and Wealth,64(1):105-126.DOI: 10.1111/roiw.12287
[ 23 ] De Nardi, M. , & Fella, G. . (2017). Saving and wealth inequality. Review of Economic Dynamics, 26:280-300.DOI：10.1016/j.red.2017.06.002
[ 24 ] Cutler, D. M. , & Katz, L. F. . (1992). Rising inequality? changes in the distribution of income and consumption in the 1980's. American Economic Review, 82 (May): 546–51.DOI：10.2753/PET1061-1991350277
[ 25 ] Johnson, D. , & Shipp, S. . (1997). Trends in inequality using consumption‐expenditures: the u.s. from 1960 to 1993. Review of Income and Wealth, 43(2),133-152.DOI：10.1111/j.1475-4991.1997.tb00211.x
[ 26 ] Blundell, R. , & Preston, I. . (1998). Consumption inequality and income uncertainty. The Quarterly Journal of Economics,113(2), 603-640.DOI: 10.1162/003355398555694
[ 27 ] Pendakur, K. . (1998). Changes in canadian household income and household consumption inequality between 1978 and 1992. Review of Income and Wealth, 44(2),259–283.DOI：10.1111/j.1475-4991.1998.tb00272.x
[ 28 ] Roemer,J. E..（2002）. Equality of Opportunity：A Progress Report. Social Choice & Welfare,19（2）：455-471.DOI：10.1007/s003550100123
[ 29 ] Roemer,J.E. . (2012). On several approaches to equality of opportunity. Economics and Philosophy, 28(02), 165-200.DOI：10.1017/S0266267112000156
[ 30 ] Ferreira, F. H. G. , & Jérémie,G.. (2011). The measurement of inequality of opportunity: theory and an application to latin america. Review of Income and Wealth, 57（4）：622-657.DOI：10.1111/j.1475-4991.2011.00467.x
[ 31 ] Bourguignon, F. . (1979). Decomposable income inequality measures. Econometrica, 47(4), 901-920.DOI：10.2307/1914138
[ 32 ] Shorrocks, A. F. . (1980). The class of additively decomposable inequality measures. Econometrica, 48(3), 613-625.DOI：10.2307/1913126
[ 33 ] Kai-Yuen, T. . (1998). Trends and inequalities of rural welfare in china: evidence from rural households in guangdong and sichuan. Journal of Comparative Economics, 26(4), 783-804.DOI：10.1006/jcec.1998.1553
[ 34 ] Lise, J. , & Seitz, S. . (2011). Consumption inequality and intra-household allocations. The Review of Economic Studies, 78(1), 328-355.DOI：10.1093/restud/rdq003
[ 35 ] Kapeller, J. , & Schütz, Bernhard. (2015). Conspicuous consumption, inequality and debt: the nature of consumption-driven profit-led regimes. Metroeconomica, 66(1), 51-70.DOI：10.1111/meca.12061
[ 36 ] Atkinson, A. B. . (1970). On the measurement of inequality. Journal of Economic Theory, 2(3), 244-263.DOI：10.1016/0022-0531(70)90039-6
[ 37 ] Pigou,A. C.(1912). Wealth and welfare. Macmillan and Company,limited. 
[ 38 ] Dalton,H.. (1920). The measurement of the inequality of incomes. The Economic Journal, 30(119), 348-361.DOI：10.2307/2223525
[ 39 ] Ohtake, F. , & Saito, M. . (1998). Population aging and consumption inequality in japan. Review of Income and Wealth, 44(3), 361-381.DOI：10.1111/j.1475-4991.1998.tb00287.x
[ 40 ] Barreti, G. F. , Crossley, T. F. , & Worswick, C. . (2000). Demographic trends and consumption inequality in australia between 1975 and 1993. Review of Income and Wealth, , 46(4):437-456.DOI：10.1111/j.1475-4991.2000.tb00410.x
[ 41 ] Meyer, B. D. , & Sullivan, J. X. . (2013). Consumption and income inequality and the great recession. American Economic Review, 103(3), 178-183.DOI：http://dx.doi.org/10.1257/aer.103.3.178
[ 42 ] Garner, T. I. , & Sastre, R. C. . (2003). The influence of demographics and household-specific price indices on consumption-based inequality and welfare: a comparison of spain and the united states. Southern Economic Journal, 70(1), 22-48.DOI：10.2307/1061630
[ 43 ] Qu, Z. , & Zhao, Z. . (2008). Urban-rural consumption inequality in china from 1988 to 2002: evidence from quantile regression decomposition. Social Science Electronic Publishing.DOI：10.1111/j.0042-7092.2007.00700.x
[ 44 ] Chang, H. H. . (2012). Consumption inequality between farm and nonfarm households in taiwan: a decomposition analysis of differences in distribution. Agricultural Economics, 43(5), 487–498.DOI: 10.1111/j.1574-0862.2012.00598.x