This study examines the distribution of expenditure, excluding home produced
food and gifts for 2002, utilizing the Jamaica Survey of Living Conditions. It
employs the methodology of Lerman and Yitzhaki to disaggregate consumption
expenditure by broad expenditure groups and to estimate the elasticities of
expenditure. The results suggest that the elasticities for meals away from home,
transportation, education, and recreation, housing and household expenses were
elastic. This implies that imposing taxes on such goods would reduce the inequality
in expenditure, as such taxes will be progressive. On the other hand, imposing
additional taxes on food and beverages, personal care, fuel and household supplies,
health care, and clothing and footwear would increase expenditure inequality,
since they will be regressive