This paper studies the effect of digitalization on consumption inequality. We assemble a novel dataset of digital … technology in the consumption basket of US households and establish a new stylized fact: High-income households have a higher … consumption share of digital products than low-income households. Building on this finding, we present a structural model in which …

This paper studies how digitalization affects consumption inequality. We assemble a novel dataset of digital technology … used in the production process, link it to US consumption data and establish a new stylized fact: High-income households … structural model in which digitalization affects consumption inequality in two ways: By a polarization of incomes and by a …