Discussion Papers,
Statistics Norway, Research Department

Abstract: This article describes the consumption model and inequality study of Chapter 2 in the author's unpublished Ph.D. dissertation submitted at the Dept. of Economics, University of California, Berkeley. The Norwegian Research Council and Statistics Norway financed the project; project no. 120636/730. The following lent encouragement and expertise: Rolf Aaberge, Jørgen Aasness, George Akerlof, Erik Biørn, Clair Brown, Brad DeLong, Michael Hanemann, Christina Romer, David Romer, Kenneth Train, Thor Olav Thoresen, and Knut Reidar Wangen in addition to seminar participants at Statistics Norway and University of California, Berkeley. Thanks belong to all, shortcomings only to the author.

Keywords: Consumption inequality; distribution; household consumption; latent variable model; standards of living; tax reform

JEL-codes: D12; D31; D63; H24 August 2002

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