Trends in Inequality and Welfare in Consumption Expenditure: The Case of Pakistan (Income DISTRIBUTION AND SAVINGS Behaviour) (Report‪)‬

This paper provides a framework in which inequality and welfare in consumption-expenditure can be analysed. The study is based on "Household Income and Expenditure Survey" data for the years 1979 to 1992-93. Sen welfare index is used to determine the level of disparities in different sections of the society. The estimate shows that the level of consumption increased but inequality did not vary much over time. The level of consumption and inequality remained high among urban households. The disparity in food consumption is not high as compared to non-food consumption expenditure. As far as economic welfare is concerned its level increased over time and its magnitude is always greater in urban area. Finally, the price elasticity of welfare has shown that 'food' expenditure is more responsive in price changes in all areas. INTRODUCTION