Income distribution, the structure of consumer expenditure and development policy

Bibliographic Data

ID20473704
AuthorsPanos Pashardes (Birkbeck, University of London, corresponding author)
Year1980
Volume16
Issue2
Pages224-245
Publication date1980-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueThe Journal of Development Studies (JOURNAL)
Journal identifiersISSN: 0022-0388 • E-ISSN: 1743-9140
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/00220388008421756
OpenAlexW2009007496
LanguageEN
Citations received2
References cited16

This paper examines how and why the effects of inequality on the structure of consumption must be taken into account in development policy. It shows that, by utilising the concept of the ‘representative’ consumer, the role of income distribution as a determinant of the structure of consumption can be modelled in a theoretically consistent and empirically constructive way. The importance and methods of introducing consumer preferences and needs into the model are also analysed. Then using a simple Greek input‐output model several hypotheses about income redistribution are empirically investigated. The results indicate that egalitarian redistributions induce favourable employment and balance of payments effects, especially when the planner takes into account other sources of variation in consumer demand arising from differences in preferences across households. Rises in inequality are likely to cause comparatively more serious opposite effects and therefore must be avoided

Balance (ability) · Constructive · Consumption (sociology) · Distribution (mathematics) · Econometrics · Economics · Income distribution · Inequality · Microeconomics · Payment · Planner · Public economics · Redistribution (election) · Sociology · Computer Science · Economic theories and models · Economic Theory and Policy · Income, Poverty, and Inequality · Mathematics

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