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Economic Inequality in the ‘Democratic’ Nepal: Dimensions and Implications
Unformatted Document Text:  15 expenditures, incomes, and wealth by the end of the period. While the Others have seen significant decline in average household wealth, their relative position still remained strong. Tables 4, 5, and 6 present estimates useful to assess the spatial form of the horizontal inequality with variations across urban/rural, regional, and ecological distinctions. Reports suggest large discrepancies in household expenditures, incomes, and wealth across different urban/rural, regional, and ecological areas, the condition that did not improve much during the eight years covered. More specifically, the estimates reported in Table 4 demonstrate that the average household expenditures, incomes, and wealth were considerably higher in urban areas than in rural areas. The estimates for the rural areas were one third the estimates for the urban areas or even lower except for the income sources such as agriculture and home or in-kind production, the popular domains of a country life. It is understandable that the cost of living tends to be higher in urban areas, a fact clearly substantiated by the rental incomes in urban areas that are six times those in rural areas. Yet this many not be sufficient to justify the disproportionately higher income, wealth, and especially expenditure estimates in urban areas, given that the shadow prices have been incorporated for all resources including house rental and home or in-kind production in which cases market price are not readily available. Although the declining property wealth and especially the real estate and housing values contributed to lower incomes from such related sources as house rental, the growth rate of income, expenditures, and wealth in rural areas exceeded those in urban areas during the eight years. This faster rate of growth was not enough to significantly improve the relative position of rural areas, however, since their 1996 values were tremendously smaller. (Insert Table 4 here)

Authors: Wagle, Udaya.
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15
expenditures, incomes, and wealth by the end of the period. While the Others have seen
significant decline in average household wealth, their relative position still remained strong.
Tables 4, 5, and 6 present estimates useful to assess the spatial form of the horizontal
inequality with variations across urban/rural, regional, and ecological distinctions. Reports
suggest large discrepancies in household expenditures, incomes, and wealth across different
urban/rural, regional, and ecological areas, the condition that did not improve much during the
eight years covered. More specifically, the estimates reported in Table 4 demonstrate that the
average household expenditures, incomes, and wealth were considerably higher in urban areas
than in rural areas. The estimates for the rural areas were one third the estimates for the urban
areas or even lower except for the income sources such as agriculture and home or in-kind
production, the popular domains of a country life. It is understandable that the cost of living
tends to be higher in urban areas, a fact clearly substantiated by the rental incomes in urban areas
that are six times those in rural areas. Yet this many not be sufficient to justify the
disproportionately higher income, wealth, and especially expenditure estimates in urban areas,
given that the shadow prices have been incorporated for all resources including house rental and
home or in-kind production in which cases market price are not readily available. Although the
declining property wealth and especially the real estate and housing values contributed to lower
incomes from such related sources as house rental, the growth rate of income, expenditures, and
wealth in rural areas exceeded those in urban areas during the eight years. This faster rate of
growth was not enough to significantly improve the relative position of rural areas, however,
since their 1996 values were tremendously smaller.
(Insert Table 4 here)


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