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Consumption inequality and inflation differentials among different income groups in Egypt

One of the dilemmas about inequality in Egypt is that perception of inequality has always exceeded actual measures of inequality. Egyptians have long called for more equal income distribution while Gini coefficient according to income figures has maintained its same magnitude ranging from 37.8 perce...

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Main Author: Abdallah, Dina
Format: Thesis
Published: AUC Knowledge Fountain 2016
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access_status_str Open Access
author Abdallah, Dina
author_browse Abdallah, Dina
author_facet Abdallah, Dina
author_sort Abdallah, Dina
collection Thesis
dc_rights_str_mv The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.
description One of the dilemmas about inequality in Egypt is that perception of inequality has always exceeded actual measures of inequality. Egyptians have long called for more equal income distribution while Gini coefficient according to income figures has maintained its same magnitude ranging from 37.8 percent to 36.6 percent in the last decade (World Bank, 2012). One claim to explain this puzzle is that inequality directly impacts on welfare; people feeling worse off compared to the rest of the economy. When it comes to welfare, consumption captures people utility better than income does. Using consumption expenditure data from different waves of Household Income and Consumption survey 1999-2013, this thesis investigates consumption inequality among different income groups in Egypt and found an improvement in consumption inequality overtime. In addition, we examine to what extent does inflation affect different income groups in Egypt. We find that differences in baskets of goods consumed, perceptions of necessities and luxuries and the fact that people do not pay the same prices for the same goods weaken CPI power in estimating the average consumer's cost of living. More accurate weighting for different consumption baskets based on income groups used throughout the thesis show statistically significant different inflation rates. One policy recommendation is to improve indexation policies because the lower income groups burden a proportional share of inflation.
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institution American University in Cairo (Egypt)
last_indexed 2026-06-10T12:35:41.195Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from AUC Knowledge Fountain — bepress
publishDate 2016
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spelling oai:fount.aucegypt.edu:etds-1365 Consumption inequality and inflation differentials among different income groups in Egypt Abdallah, Dina One of the dilemmas about inequality in Egypt is that perception of inequality has always exceeded actual measures of inequality. Egyptians have long called for more equal income distribution while Gini coefficient according to income figures has maintained its same magnitude ranging from 37.8 percent to 36.6 percent in the last decade (World Bank, 2012). One claim to explain this puzzle is that inequality directly impacts on welfare; people feeling worse off compared to the rest of the economy. When it comes to welfare, consumption captures people utility better than income does. Using consumption expenditure data from different waves of Household Income and Consumption survey 1999-2013, this thesis investigates consumption inequality among different income groups in Egypt and found an improvement in consumption inequality overtime. In addition, we examine to what extent does inflation affect different income groups in Egypt. We find that differences in baskets of goods consumed, perceptions of necessities and luxuries and the fact that people do not pay the same prices for the same goods weaken CPI power in estimating the average consumer's cost of living. More accurate weighting for different consumption baskets based on income groups used throughout the thesis show statistically significant different inflation rates. One policy recommendation is to improve indexation policies because the lower income groups burden a proportional share of inflation. 2016-02-01T08:00:00Z thesis application/pdf https://fount.aucegypt.edu/etds/366 https://fount.aucegypt.edu/context/etds/article/1365/viewcontent/Final_20Thesis_20f.pdf The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy. Theses and Dissertations AUC Knowledge Fountain Welfare economics
spellingShingle Welfare
economics
Abdallah, Dina
Consumption inequality and inflation differentials among different income groups in Egypt
title Consumption inequality and inflation differentials among different income groups in Egypt
title_full Consumption inequality and inflation differentials among different income groups in Egypt
title_fullStr Consumption inequality and inflation differentials among different income groups in Egypt
title_full_unstemmed Consumption inequality and inflation differentials among different income groups in Egypt
title_short Consumption inequality and inflation differentials among different income groups in Egypt
title_sort consumption inequality and inflation differentials among different income groups in egypt
topic Welfare
economics
url https://fount.aucegypt.edu/etds/366
https://fount.aucegypt.edu/context/etds/article/1365/viewcontent/Final_20Thesis_20f.pdf
work_keys_str_mv AT abdallahdina consumptioninequalityandinflationdifferentialsamongdifferentincomegroupsinegypt