The objectives of this study are to decompose household consumer expenditure inequalities in India by regions (states) and sectors (urban‐rural) for the years 1977–78 and 1983 based on the National Sample Survey data. A class of Generalised Entropy measures is used. Our results consistently indicate that the inequality within states contributes much more towards national inequality and within‐sector inequality explains a large part of state level inequality. The inequality at state levels has shown a decline from 1977–78 to 1983 due to a better monsoon season in 1983, and anti‐poverty programmes.
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Mishra et al. (1992) studied this question.
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