Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Consumption Inequality and Partial Insurance

Richard Blundell, Luigi Pistaferri and Ian Preston
The American Economic Review
Vol. 98, No. 5 (Dec., 2008), pp. 1887-1921
Stable URL: http://www.jstor.org/stable/29730156
Page Count: 35
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
Consumption Inequality and Partial Insurance
Preview not available

Abstract

This paper examines the link between income and consumption inequality. We create panel data on consumption for the Panel Study of Income Dynamics using an imputation procedure based on food demand estimates from the Consumer Expenditure Survey. We document a disjuncture between income and consumption inequality over the 1980s and show that it can be explained by changes in the persistence of income shocks. We find some partial insurance of permanent shocks, especially for the college educated and those near retirement. We find full insurance of transitory shocks except among poor households. Taxes, transfers, and family labor supply play an important role in insuring permanent shocks.

Page Thumbnails

  • Thumbnail: Page 
1887
    1887
  • Thumbnail: Page 
1888
    1888
  • Thumbnail: Page 
1889
    1889
  • Thumbnail: Page 
1890
    1890
  • Thumbnail: Page 
1891
    1891
  • Thumbnail: Page 
1892
    1892
  • Thumbnail: Page 
1893
    1893
  • Thumbnail: Page 
1894
    1894
  • Thumbnail: Page 
1895
    1895
  • Thumbnail: Page 
1896
    1896
  • Thumbnail: Page 
1897
    1897
  • Thumbnail: Page 
1898
    1898
  • Thumbnail: Page 
1899
    1899
  • Thumbnail: Page 
1900
    1900
  • Thumbnail: Page 
1901
    1901
  • Thumbnail: Page 
1902
    1902
  • Thumbnail: Page 
1903
    1903
  • Thumbnail: Page 
1904
    1904
  • Thumbnail: Page 
1905
    1905
  • Thumbnail: Page 
1906
    1906
  • Thumbnail: Page 
1907
    1907
  • Thumbnail: Page 
1908
    1908
  • Thumbnail: Page 
1909
    1909
  • Thumbnail: Page 
1910
    1910
  • Thumbnail: Page 
1911
    1911
  • Thumbnail: Page 
1912
    1912
  • Thumbnail: Page 
1913
    1913
  • Thumbnail: Page 
1914
    1914
  • Thumbnail: Page 
1915
    1915
  • Thumbnail: Page 
1916
    1916
  • Thumbnail: Page 
1917
    1917
  • Thumbnail: Page 
1918
    1918
  • Thumbnail: Page 
1919
    1919
  • Thumbnail: Page 
1920
    1920
  • Thumbnail: Page 
1921
    1921