index, which is an overall measure of inequality, increased from 32.6 percent in 1992-93 10 37.1 percent in 1997-98. Thus, inequality in Lao PDR has deteriorated sharply over time. Table 6: Inequality of per capita nominal consumption Inequality measure 1992.93, 1997-98 Growth rate Gini index 326 a 2o BS 1A 28 124 4 16 160 182. 10 18 207 08 a7 453 47 Since different households face different prices as well as different inflation rates, 10 we should compute the inequality of per capita real consumption, which takes i account regional differences in the cost of living and also changes in monthly consumer prices. The empirical results for per capita real consumption presented in Table 7 show that the Gi i index for the real per capita consumption is lower than that of per capita nominal consumption in both 1992-93 and 1997-98 periods, which implies that the richer regions tend to have higher costs of living than the poorer regions. Most studies measure inequality of per capita nominal consumption, which as we observe here, tends to exaggerate the true level of inequality. Table 7: Inequality of per capita real consumption Inequality measure 1992.93, 1997-98 Growth rate Gini index 305 Quinte shares First 92 an 28 ‘Second 9 120 18 Thied 162 155 08 Fourth 15 207 08 in 401 437, 7