Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income

Gorodnichenko, Yuriy; Peter, Klara Sabirianova; & Stolyarov, Dmitriy. (2010). Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income. Review of Economic Dynamics, 13(1), 209-37.

Gorodnichenko, Yuriy; Peter, Klara Sabirianova; & Stolyarov, Dmitriy. (2010). Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income. Review of Economic Dynamics, 13(1), 209-37.

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We construct key household and individual economic variables using a panel micro data set from the Russia Longitudinal Monitoring Survey (RLMS) for 1994–2005. We analyze cross-sectional income and consumption inequality trends and find that inequality decreased during the 2000–2005 economic recovery. The decrease appears to be driven by falling volatility of transitory income shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent with greater self-insurance against permanent shocks and greater smoothing of transitory shocks. Finally, expenditure and income inequality in Russia are not far apart.


Population and Health Policies and Programs


JOUR



Gorodnichenko, Yuriy
Peter, Klara Sabirianova
Stolyarov, Dmitriy



2010


Review of Economic Dynamics

13

1

209-37










4661

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