infonet-economy

This paper employs ICP expenditure data to investigate the relationship between income and product diversity. It turns out that per-capita income has a strong positive impact on the number of products consumed at a non-negligible level in a country, and a significant negative impact on the concentration of consumers' expenditure across different goods categories. Inequality in the size distribution of incomes has a significant positive impact on the number of consumed goods, but no clear effect on the concentration of expenditure.