Dynamics of Changes in Income Elasticity of Consumption in the European Union Countries

In the paper an analysis of Gross Domestic Product (GDP) and consumption expenditures in the European Union countries for the period 1979 through 2004 is carried out. The analysis considers time and regional profiles and uses Lorenz curves and the Gini index. Moreover, the analysis of elasticity of consumption with respect to the GDP value is made by the use of econometric models such as the dynamic exponential model and distributed lag models.