Evolution of the consumption pattern of Brazilian families between 2008 and 2017

Abstract

Between 2004 and 2014, Brazil experienced a rise in mass consumption, thanks to the increase in the purchasing power of low-income families. This article analyzes, from a microeconomic perspective, the changes in the pattern of household expenditure that resulted from this scenario. It also assesses the extent to which the economic crisis that started in 2014 has reversed the improvement in the welfare level reached in the previous period. To this end, we use data from the 2017-2018 Brazilian Family Budget Survey, comparing them with the corresponding results from its previous edition (2008-2009). We estimate per capita family expenses in different categories, as well as income-elasticities and concentration ratios, to evaluate which types of expenditure have become more (or less) concentrated in the relatively wealthy families. We pay particular attention to consumption expenditure, given its direct influence on living standards.

Keywords:
Family expenditure; Income elasticity; Concentration curve; Gini index decomposition; Brazil