Decomposition of Food Expenditure Inequality: An Application of the Extended Gini Coefficient to Greek Micro-Data

The principal purpose of this paper is to examine theeffects of 16 food items on the overall foodexpenditure inequality in Greece using the raw data ofFamily Budget Surveys conducted during 1987/88 and1993/94. The method employed was the decomposition ofthe extended Gini coefficient. According to theresults, taxing expenditure on food consumed away fromhome and on alcoholic drinks will improve thedistribution of food expenditure equality and willincrease the progressivity of the tax system.Subsidising the other food items will have the samebut more modest effect.