Journal Article
Income Inequality and Income-Class Consumption Patterns
Abstract: This Commentary investigates whether there has been a growing divergence in the consumption of luxury and necessity goods across income classes. The analysis shows that while necessities represent a majority of the consumption basket for lower and middle income quintiles, their consumption of necessities in inflation-adjusted dollars has been declining in the face of higher prices of such goods and stagnant income growth. Higher income quintiles have seen increases in their consumption of luxuries, simultaneous with a decline in their consumption of necessities.
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https://doi.org/10.26509/frbc-ec-201418
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https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/economic-commentary/2014/ec-201418-income-inequality-and-income-class-consumption-patterns/ec-201418-income-inequality-and-income-class-consumption-patterns-pdf.pdf
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Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2014
Issue: Oct
Order Number: 18