Replication data for: Consumption Inequality and Partial Insurance

This paper examines the link between income and consumption inequality. We
create panel data on consumption for the Panel Study of Income Dynamics using
an imputation procedure based on food demand estimates from the Consumer
Expenditure Survey. We document a disjuncture between income and consumption
inequality over the 1980s and show that it can be explained by changes in
the persistence of income shocks. We find some partial insurance of permanent
shocks, especially for the college educated and those near retirement. We
find full insurance of transitory shocks except among poor households. Taxes,
transfers, and family labor supply play an important role in insuring permanent
shocks. (JEL D12, D31, D91, E21)<br>