Inequality of Cameroonian Households: An Analysis Based on Shapley-shorrocks Decomposition

Célestin, Chameni Nembua; Clovis, Miamo Wendji

doi:10.5539/ijef.v4n6p149

Cited by 4 publications

(2 citation statements)

References 17 publications

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“…This conclusion is quite prominent in the work of Sakib (2011) and supported by Andrew and Sarmistha (2004) for Cameroun. On the other hand, Celestin and Clovis (2012) also find that the expenditure on food and housing explains inequality by sources, while the expenditure distribution is much more unequal in households headed by a man in urban areas. In Cameroon, Fambon (2009) and Baye (2005) show that the household average expenditure for the non-poor as well as non-educated is approximately four times higher than the poor household.…”

Section: Empirical Literaturementioning

confidence: 81%

“…Other studies such as Andrew and Sarmistha (2004), Tapsin and Hepsag ( 2014 2005), Gangopadhyay and Wadhwa (2004) and Kumar and Agawam (2003) have also investigated the issues of inequality and sources of inequality in consumption expenditure patterns across different economies. Additionally, other studies that have investigated the sources of inequality in consumption and income/expenditure include Gregg et al (2005) for the UK, Celestin and Clovis (2012) for Malaysia, Mishra (2013) for India and Sakib (2011) for Bangladesh. These studies generally agree that there is a long-run relationship between inequality, consumption expenditure and economic growth.…”

Section: Empirical Literaturementioning

confidence: 99%

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Household consumption expenditure and inequality: evidence from Nigerian data

Nwosu

Ojonta

Orji

2018

IJDI

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Purpose Enhancing household consumption and reducing inequality are among the fundamental goals of many developing countries. The purpose of this study therefore is to disaggregate household consumption expenditure into food and non-food and, thus, decompose inequality into within- and between-groups. Design/methodology/approach The study adopts generalised entropy (GE) measures. Second, the study uses regression-based inequality decomposition to ascertain the determinants of inequality in food and non-food expenditure using household demographic and socioeconomic characteristics as covariates. Findings The results show that non-food expenditure is the major source of inequality in household consumption expenditure in both urban and rural areas with inequality coefficients of above 0.6 compared to about 0.4 for food expenditure. The decompositions also show that within-group inequalities for non-food and food expenditure are, respectively, 0.97 and 0.365 using the Theil index, while between-group inequalities for non-food and food are, respectively, 0.016 and 0.035. Furthermore, the regression-based inequality decompositions show that variables such as living in rural areas, household size, household dwelling and household dwelling characteristics account for the significant proportion of inequality in food and non-food expenditure. Originality/value The policy implication of the findings, among others, is that policies should focus on addressing inequality within rural and urban areas, especially with respect to non-food expenditure than in inequality existing between urban and rural areas. These non-food expenditures include expenditure in education, health, energy, accommodation, water and sanitation.

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Section: Empirical Literaturementioning

confidence: 81%

Section: Empirical Literaturementioning

confidence: 99%

Household consumption expenditure and inequality: evidence from Nigerian data

Nwosu

Ojonta

Orji

2018

IJDI

View full text Add to dashboard Cite

show abstract

Factor decomposition of the wealth distribution in the euro area

Lindner

2015

Empirica

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Economic policy often targets specific components of the household balance sheet such as policies supporting the financing of real estate or setting the interest rate. To understand the potential impact of these policy measures on the overall distribution of wealth, this paper investigates the link between components of wealth and the overall distribution of wealth, using factor decomposition methods. Applying methods from the literature and a new decomposition approach based on the recentered influence function, it uses the newly published data provided by the Eurosystem Household Finance and Consumption Survey. Specifically, the paper studies the (marginal) contributions of and the elasticity with respect to components of the household's balance sheet for the euro area as a whole as well as for 15 euro area countries. We find some factors (such as wealth held in households' main residence) to contribute a higher proportion to inequality while others (such as risky financial assets) display only a relatively weak contribution. In addition, elasticities reveal a diverging impact of different components on the wealth distribution. Furthermore, the relative contribution and the point elasticities of the components of total wealth differ across euro area countries, indicating regionally distinctive impacts of policy measures.

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