Component 2: Weighted private consumption expenditure

Definition

The component covers the unweighted private consumption expenditures of domestic private households in prices of 2010, weighted with the Gini-Index of equivalent-incomes (cf. definition component 1).

Effect on the NWI:

Description and meaning of the component

In the context of concepts of welfare measurement  growth in private consumption is regarded positive: It is assumed that the consumption of a good creates utility for the user.

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Development of the component

Unweighted versus weigthed consumption expenditures

(prices of 2010)

billion Euro

© FEST/FFU

  • unweighted consumption expenditures
  • weigthed consumption expenditures

source: Statistisches Bundesamt, graphic account by FEST/FFU