Consumption distribution explained

In economics, the consumption distribution or consumption inequality is an alternative to the income distribution or wealth distribution for judging economic inequality, comparing levels of consumption or spending rather than income or wealth.^[1] This is an important measure of inequality as the basic utility of the wealth or income is the expenditure.^[2] People experience the inequality directly in consumption, rather than income or wealth.^[3]

See also

• Asset
• Economic inequality
• Income
• Lorenz curve
  • Wealth concentration Wealth (economics)
• Wealth

Notes and References

1. https://www.oecd-ilibrary.org/economics/framework-for-statistics-on-the-distribution-of-household-income-consumption-and-wealth_9789264194830-en
2. https://web.stanford.edu/~pista/JEP.pdf
3. https://www.jpmorganchase.com/institute/research/cities-local-communities/insight-consumption-inequality