 Facts and figures about UK taxes, benefits and public spending.
Analysing government fiscal forecasts and tax and spending.
Case studies that give a flavour of the areas where IFS research has an impact on society.
Reforming the tax system for the 21st century.
A peer-reviewed quarterly journal publishing articles by academics and practitioners.
Find out where you are in the income distribution.
Resources for schools and students.
|
Type: IFS Working Papers Authors: Erich Battistin, Richard Blundell and Arthur Lewbel ISSN: 1742-0415
Now published in: Journal of Political Economy [Details]
Significant departures from log normality are observed in income data, in violation of Gibrat's law. We identify a new empirical regularity, which is that the distribution of consumption expenditures across households is, within cohorts, closer to log normal than the distribution of income. We explain these empirical results by showing that the logic of Gibrat's law applies not to total income, but to permanent income and to maginal utility. These findings have important implications for welfare and inequality measurement, aggregation, and econometric model analysis. Search |
IFS publications are made available free of charge online wherever possible. If you would like to make a donation to IFS to help support our research, you can donate via Just Giving.
|
|
© The Institute for Fiscal Studies
Limited by Guarantee,Registered in England: 954616 7 Ridgmount Street London WC1E 7AE Registered Charity: 258815 VAT no: GB 394 5830 17 |
||||||
