Consumption Expenditure Research Articles

Spatial Poverty in Benin: Human Capital, Isolation and Governance

Benin has witnessed significant economic growth over the past decades, positioning itself as a rising economy in the west African subregion. This notwithstanding, persistent subnational differences in poverty were observed, suggesting a challenge of growth inclusiveness. This study provides evidence on the effects of human capital differences, isolation, and institutional quality on the determinants of household expenditure and factors that explain the southern-northern welfare gaps. This study employs a decomposition technique based on re-centred influence functions. I find significant spatial differences in consumption expenditure at the mean and across selected quantiles, with an increasing gap along welfare distribution and driven largely by differences in the returns to households’ endowments in social public infrastructure. Access to energy and human capital measured by the education level of the head of the household generally favours the rich in the leading region and contributed significantly to explaining the difference in the welfare gap. The difference in access to roads widens the gap for the poor, whereas governance quality at the local level reduces it. To reduce the poverty gap, a public policy to improve returns of household endowments in the social sector should be integrated with other initiatives to address the underlying determinants of inequalities.

Does participation in innovation platform improve welfare? Insights from smallholder maize farmers in Ghana

This paper investigates the impact of participation in innovation platforms (IPs) on smallholder maize farmers’ welfare in the Brong Ahafo region of Ghana using data collected from 477 rural farm households. We employed the doubly robust inverse probability weighted regression adjustment method (IPWRA) and propensity score matching (PSM) approach to examine the impact of IP participation on yield, income, and per capita consumption expenditure. The empirical results show that age, farming experience, farm size, land ownership, and credit access are the main determinants of participation in IPs in Ghana. In addition, the results show that participation in IPs increases yields and household income and reduces per capita expenditure of smallholder maize farmers in Ghana. Furthermore, the advantages of engaging in the IPs go beyond the traditional extension service delivery approach. This highlights the importance of policymakers and agricultural development agencies in developing nations to establish policies that encourage the establishment of IPs and promote their involvement among small-scale farmers, resulting in better living standards.

Age structure of the population and household consumption expenditure on tourism

Based on data from the China Family Tracking Survey (CFPS), this paper systematically analyzes the impact of family characteristics on family tourism consumption expenditure under the changing age structure of the population. It is found that an increase in the old-age dependency ratio has a significant inhibitory effect on household tourism consumption expenditures. It is further found that households' increased wage income, integration into new social media, and accumulation of health capital can weaken the inhibitory effect of aging on tourism consumption and strengthen the promotional effect of tourism consumption generated by an increase in the juvenile dependency ratio.

Did the Economic Reforms Change the Macroeconomic Drivers of the Indian Economy in the Post-Reform Era? An ARDL Bounds Test Approach

Purpose: The purpose of this study is to investigate the macroeconomic forces that have been driving the Indian economy during both the pre-reform and post-reform eras, that is, from 1950-1951 to 1990-1991 and from 1991-1992 to 2022-2023 respectively. 
 Problem: The Indian economy underwent significant economic and financial sector reforms in 1991-92, with the goal of reviving its stagnant growth. These reforms are intended to spur the economic growth of India. What were the main forces behind the Indian economy before and after the reforms? Is the research question. The goal of the current study is to determine if the economic reforms shifted or maintained the pre-reform era’s driving forces for the Indian economy in the post-reform era. 
 Design/Methodology/Approach: The gross domestic product (GDP), the gross domestic savings (GDS), the private consumption expenditure (PFCE), the government final consumption expenditure (GFCE), the inflation rate, the exchange rate, the exports, the imports, the internal and external borrowings of the government, personal remittances, foreign direct investment (FDI), and foreign portfolio investments (FPI) are all taken into consideration in order to fill the research gap that has been identified as a result of the comprehensive review of the literature. Following an analysis of the selected variables' fundamental characteristics, an econometric model is developed using the Autoregressive Distributed Lag (ARDL) Bounds Test Model. 
 Findings: There is no evidence of long-run causation and association between the variables, but the findings of the ARDL Bounds Test showed that in the pre-reform period, PFCE is the major driver of the GDP in the short-run, with strong support from imports. However, since the reform, PFCE, GDS, and Exports are the primary short- and long-term contributors to GDP. 
 Practical Implication: These findings indicate that India's macroeconomic system is shifting. The Indian economy has undergone a dramatic shift, moving away from a reliance on imports and toward one that is consumer-driven and export-driven. As savings and consumer expenditures are the main drivers of the Indian economy’s growth in the post-reform era, policies should be designed to increase savings and consumption as well as increase exports.

Impact of urbanization on the welfare of farm households: Evidence from Adama Rural District in Oromia regional state, Ethiopia

Urbanization is a widespread phenomenon with varying causes, patterns, and effects across countries. However, existing studies have overlooked the specific impact of urbanization on households near urban areas by failing to compare them with households in more distant regions. This study examines the impact of urbanization on rural household welfare in the Adama Rural District of the Oromia Region, Ethiopia. A multi-stage sampling technique was employed, selecting a sample of 397 households from two distinct categories. Of these households, 148 were located near the urban center, while 249 were far away. The study utilized descriptive and inferential data analysis methods and employed the propensity score matching technique to investigate the impact on farm households. Data was collected through questionnaires to gather cross-sectional information, supplemented by qualitative insights from Key Informant Interviews. The findings revealed that households near urban areas had a significantly lower mean annual consumer expenditure of 5207 ETB compared to 8092 ETB spent by families in distant areas. The results from propensity score matching further indicated that households near urban centers experienced lower annual consumption expenditures than those located further away. These results highlight the influence of urbanization on the welfare of rural farming households near urban areas. To address the negative effects of urbanization on these households, city administrations, and regional governments need to prioritize the development and implementation of alternative livelihood support strategies. Additionally, the study emphasizes the necessity of implementing policies that mitigate farmland loss while considering the socioeconomic factors impacting farmers in the region.

Mineral rents, natural resources depletion, and ecological footprint nexus in high emitting countries: Panel GLM analysis

Natural resource depletion is a serious problem facing many countries today. As minerals and other natural resources are extracted from the ground, they are not replaced, leading to biodiversity loss and environmental degradation. The problem of natural resource depletion is compounded by the fact that, in many cases, mineral rents are not used to help replenish the resources being taken out of the ground. This study examines the impact of mineral rents and natural resources depletion on the ecological footprint in the high emitting countries from 1973 to 2019, using general government final consumption expenditure and international trade as moderating variables. Mineral rent and international trade are negatively associated with the ecological footprint. In contrast, general government final consumption expenditure and natural resource depletion are positively associated with an ecological footprint in the top emitting countries. Government expenditure and natural resource depletion deteriorate the environment, while mineral rents and exports of goods and services improve the environment. By investing in green technologies, the highest-emitting countries can reduce their ecological footprint and increase sustainability. In conclusion, the policy implications for mineral rents are clear – reducing the ecological footprint of the highest-emitting countries. By levying mineral rents, governments can ensure that companies pay their fair share for the resources they extract and raise revenue to fund environmental protection and renewable energy projects. This will help to reduce emissions and improve air quality, making the highest-emitting countries more sustainable in the long term.

Does crop insurance ensure food security for Indian farmers? Evidence from a nationally representative survey

AbstractThis study examines the impact of farm households' decision to adopt crop insurance and its effect on food security. Using the National Sample Survey Office's 77th round of data (2019–2020) from Indian farming households, the endogenous switching regression results confirm that insuring crops against production risks increases food security (as measured by higher consumption expenditures and net farm income). Specifically, findings show that farming households would decrease consumption expenditures by 15% and net farm income by 26% if they had not adopted crop insurance. Similarly, the noninsured families would have 23% higher consumption expenditures and 31% higher net farm income if they had insured crops. However, we find heterogeneity in welfare impacts because large farmers reap more benefits than smallholders. Policy implications from this study call for increased awareness of insurance programs, educating farmers about crop insurance schemes, and an effective institutional framework to reduce heterogeneity in insurance benefits. [EconLit Citations: Q13, Q18, O53].

Golf players as a customer segment: the influence of handicap level and residency in customer satisfaction and expenditure

Segmentation has been proven to be one of the best tools to facilitate sports entities' achievement of their goals. The objective of this research was to analyze the influence on customer expenditure and satisfaction for an elite golf event based on segmentation variables such as residence (local vs visitor) and handicap level of the attendees (spectator vs spectator-player). In addition, this research aimed to establish a multivariate model that allows predicting the place of residence and the handicap based on the interaction of the analyzed variables, with the intention to establish a behaviour pattern based on these variables for those attending an elite golf tournament. Results revealed that attendees with a golf handicap exhibited higher satisfaction levels and were more likely to recommend and spend at golf events. On the other hand, non-handicap spectators and those attendees from outside Madrid displayed higher economic expenditure, indicating the importance of meeting their specific needs to achieve positive economic impact results. The decision tree models provided insights into attendee behavior, identifying factors influencing their satisfaction and likelihood to attend again. Factors including future attendance intention, satisfaction with the food court variety, and spending on accommodation and souvenirs were found to be significant predictors of residency and handicap level. In conclusion, this research contributes to the understanding of customer behavior at elite golf events, offering practical implications for event organizers and sport managers. Keywords: consumer expenditure, customer satisfaction, golf, handicap, segmentation, sport events, sport tourism.

Application and performance of heart-rate-based methods to estimate oxygen consumption at different exercise intensities in postmenopausal women.

Heart rate (HR) is a widespread method to estimate oxygen consumption ( O2), exercise intensity, volume, and energy expenditure. Still, accuracy depends on lab tests or using indexes like HRnet and HRindex. This study addresses HR indexes' applicability in postmenopausal women (PMW), who constitute over 50% of the aging population and may have unique characteristics (e.g., heart size) affecting HR use. Fourteen PMW underwent a cycling ramp incremental test to establish the relationships between O2 (in MET) and absolute HR, HRnet, and HRindex. In a second group of ten PMW, population-specific and general equations were tested to predict MET and energy expenditure during six constant work exercises at various intensities. Pulmonary gas exchange and HR were continuously measured using a metabolic cart. Correlations, Bland-Altman analysis, and two-way RM-ANOVA were used to compare estimated and measured values. Strong linear relationships between the three HR indexes and MET were found in Group 1. In Group 2, population-specific equations showed medium-to-high correlations, precision, and no significant biases when estimating MET and energy expenditure. HRnet and HRindex outperformed absolute HR in accuracy. General HR equations had similar correlations but exhibited larger biases and imprecision. Statistical differences between measured and estimated values were observed at all intensities with general equations. This investigation confirms the suitability of HR for estimating aerobic metabolism in one of the most significant aging populations. However, it emphasizes the importance of considering individual variability and developing population-specific models when utilizing HR to infer metabolism.

Analysis Of Urban Food Poverty And Policy Strategies For Food Control In The City Of Medan

This research analyzes food poverty in the city of Medan and formulates food control policy strategies. The analysis of the proportion of food consumption expenditures indicates high poverty rates in several districts, particularly in Medan Belawan and Medan Marelan. The SWOT approach identifies policy alternatives in quadrant 1, leveraging opportunities and strengths to address the food security and vulnerability of impoverished households. Five priority strategies were obtained, involving the optimization of food price control, increasing the availability and reserves of food, business collaboration strategies, supply control from hinterland areas, and improving economic access. The research conclusion emphasizes the need for simultaneous policy implementation covering aspects of food availability, distribution, and quality. Recommendations involve cross-sector collaboration to ensure policy sustainability and a focus on priority strategies. It is hoped that the implementation of these policies can reduce food poverty levels and improve the well-being of impoverished households in the city of Medan.

Expenditure on transportation in households in voivodeships in Poland from 2004 to 2021

The paper aims to identify differences and changes in household expenditure on transport by voivodeships in Poland from 2004 to 2021. Using two variables – the value and the share of household expenditures on transport – voivodeships with the lowest and highest levels of indicators were distinguished, and the coefficient of variation between voivodeships was calculated. The results show that the greatest increase in the value of household expenditure on transport was observed in Dolnośląskie, while the lowest increase was in the Lubuskie voivodeship. The value of expenditure on transport decreased significantly in the pandemic year 2020, but the share did not drop below the level observed in previous years, probably due to the overall decrease in household consumption expenditure. Differences between voivodeships in the value of households’ expenditure on transport did not shrink during the analyzed period, as evidenced by the coefficient of variation between 2004 and 2021, which did not decrease. Grouping voivodeships based on the value of household expenditure on transport showed that in some voivodeships, the situation remained stable, while expenditures increased in Dolnośląskie and Lubelskie, and decreased in Małopolskie and Podkarpackie.

The Determinants of Beef Cattle Market Participation on Beef Cattle Producers’ Welfare: A Case Study of West Shewa Zone, Oromia Region, Ethiopia

Due to their ability to produce meat, milk, leather, glue, gelatin, and other products that people may utilize, beef cattle are domesticated. Beef cattle production and marketing play a vital role in the growth and development of the globe and the African economy. Ethiopia has great potential for livestock population in Africa and in the world but earns less from beef cattle production and marketing. Ethiopian farmers are reluctant to beef cattle market participation. Their reluctant to participate in beef cattle marketing causes lack of beef cattle products in the market and causes high prices for beef cattle and its products. The research objective was to analyze the impact of beef cattle market participation on the welfare of beef cattle smallholder farmers in Ethiopia. The primary data come from 400 randomly selected beef cattle farmers involved in beef cattle production and marketing and actors. Descriptive statistics and inferential statistics propensity score matching (PSM) model have used to analyze the collected data. The data analysis result indicated that smallholder beef cattle farmers participating in beef cattle marketing and farmers’ annual per capita consumption expenditure (economic welfare) increased by 84% more than the nonbeef cattle market participants. We assume this is a first result and investigation in the study area. The research study is important for farmers, policymakers, researchers, and the academia in general. Providing education and training, promoting the participation of more women in beef cattle marketing, and promoting and encouraging more full-time beef cattle farmers are suggested recommendations.

Estimating the potential impact of a health tax on the demand for unhealthy food and beverages and on tax revenue in India.

Foods high in fat, sugar or salt are important contributors to the rising burden of non-communicable diseases globally and in India. Health taxes (HTs) have been used by over 70 countries as an effective tool for reducing consumption of sugar sweetened beverages (SSBs). However, the potential impacts of HTs on consumption and on revenues have not been estimated in India. This paper aims to estimate the potential impact of health taxes on the demand for sugar, SSBs and foods high in fat, sugar or salt (HFSS) in India while exploring its impact on tax revenues. PE of sugar was estimated using Private Final Consumption Expenditure and Consumer Price Index data while price elasticities for SSBs and HFSS were obtained from literature. The reduction in demand was estimated for an additional 10-30% HT added to the current goods and services tax, for varying levels of price elasticities. The results show that for manufacturers of sweets and confectionaries who buy sugar in bulk and assuming a higher price elasticity of -0.70, 20% additional HT (total tax 48%) would result in 13-18% decrease in the demand for sugar used for confectionaries and sweets. For SSBs, HT of 10-30% would result in 7-30% decline in the demand of SSBs. For HFSS food products, 10-30% HT would result in 5-24% decline in the demand for HFSS products. These additional taxes would increase tax revenues for the government by 12-200% across different scenarios. Taxing unhealthy foods is likely to reduce demand, while increasing government revenues for reinvestment back into public health programmes and policies that may reduce obesity and the incidence of non-communicable diseases in India.

Multifaceted Regional Educational Inequality: Evidence from Türkiye

ABSTRACT Educational equality is a priority in sustaining economic and human development. This study examines regional educational inequality in Türkiye by considering educational attainment, income distribution, and education spending. Average years of schooling improved in all regions between 2008 and 2020. The Education Gini and Theil indexes indicate diminishing intra-regional inequality while significant inter-regional differences persist. The income Gini coefficient was unexpectedly found to be negatively correlated with equality in educational attainment for the country and three regions. The results also show the disproportionate dominance of the top income group in the distribution of education spending and the share of education in consumption expenditures. The growing gap in educational expenditures between the top and last quintiles accompanies rising educational attainment. The recent achievement in educational attainment needs to be followed by new programs that address social and spatial educational inequality in Türkiye.

Magnitude of health expenditure induced removable poverty in India: Some reflections of Ayushman Bharat

The authors have measured the health expenditure-induced removable poverty in India using nationally representative consumer expenditure surveys of three quinquennial rounds conducted by the National Sample Survey Organization (NSSO). This study has also focused on the reflections of Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), the world's largest Government-funded health insurance scheme, on these poverty rates in the country. The study has used headcount, payment gap, and concentration index to measure the economic burden and impoverishment impact of out-of-pocket (OOP) health expenditure. The analysis shows that the incidence and depth of poverty are substantially understated because of overlooking OOP health expenditure in the country's standard poverty measure. Outpatient care contributes almost four times more than inpatient care to health expenditure-induced impoverishment in India, though this care has not been covered in the AB-PMJAY. Muslims, among all religious groups, Scheduled Castes among social groups, and casual labourers among different household types are more vulnerable to OOP health expenditure-induced removable poverty in the country. Poverty, in general, has dropped significantly, but the share of health expenditure-induced poverty in general poverty has increased substantially. It has risen considerably in rural areas and among India's most vulnerable sections of society in the past 20 years. We emphasised that universal health insurance coverage is needed in India. Implementing comprehensive health insurance schemes that cover both inpatient and outpatient care can help alleviate the financial burden of healthcare expenses on households and contribute to reducing poverty rates.

The Impact of the Disability Allowance on Financial Well-Being in the Maldives: Quasi-experimental Study

There are few impact evaluations of social assistance programmes amongst people with disabilities, despite the increasing popularity of disability-targeted programmes. The Disability Allowance in the Maldives is a non-contributory, non-means-tested and unconditional cash transfer of MVR 2000 (US$130) per month. This study explores the impact of the Disability Allowance on financial well-being using a quasi-experimental study design with difference-in-difference analysis conducted between 2017 and 2019. Overall, this study found a modest impact of the Disability Allowance, mainly in food security. Receipt of the Disability Allowance was attributable to a decrease in the use of negative coping mechanisms in response to food insecurity and an increase in the food proportion of household consumption expenditures. There was a non-significant trend towards reduced poverty headcount and gap, and the likelihood of moderate/severe food insecurity. These findings carry implications for the design of social protection in the Maldives and globally, indicating possible improvements in programme design (e.g., increased amount) and for complementary interventions (e.g., improving access to disability-inclusive livelihood development programmes) to maximise impact.

Impact of Recent Migration and Local Income Disparity: Does Time Variying Imply?

Temporary migration is one part of the potential for income inequality in the region. On this basis, this study aims to examine the effect of temporary migration on income disparity. This study uses SUSENAS panel data from 34 provinces during 2010-2019. This study uses the generalized method of moments dynamic panel regression to analyze the time change while reviewing the regional aspect. The results show that in-migration has a significant positive effect on income disparity. Meanwhile, out-migration has a negative effect on income disparity. Moreover, inflation and consumption expenditure are suspected to cause the severity of inequality. On the other hand, average years of schooling encourage people to get good labor productivity. This upward migration policy implies that it is an alternative for regions to reduce income inequality. The policy is navigated from various transmissions such as education, investment, access to public services, central and local coordination, and monitoring of labor exploitation practices.

Disparities in catastrophic health expenditure for hospitalization in Urban Kerala, India: Evidence from 75th round of the National Sample Survey

AbstractExisting literature suggests significant disparities in health expenditure incurred by households receiving health services. To determine fair contributions by beneficiaries, it is crucial to understand the existing inequalities in the context of financial protection measures and the factors influencing them. This exploratory study looks at how catastrophic health expenditures (CHE) are distributed across economic groups. The study also casts light on what drives the inequalities in the incidences of CHE. The study uses unit‐level data from the 75th round of the National Sample Survey fielded periodically by the Government of India. It employs logistic regression to study factors affecting CHE. Furthermore, the concentration index and its regression‐based decomposition are employed to have a sense of inequality and the factors driving it. The findings reveal socioeconomic inequality in CHE incidence and highlight the contribution of medical institutions (whether public or private) and consumption expenditure of households to the total inequality. The present study, while critically looking at the pre‐existing inequalities, highlights the shortcomings of health financing in urban areas and calls for a reconsideration of extant policy designs. The study maintains that factors outside the control of the health system may be responsible for disparities in catastrophic medical spending. Therefore, to reduce the burden of catastrophic health spending and its inequalities, future policy measures must take into account both elements within the health system and those outside of it.

Import Dependence of Exports, Aggregate Demand and Income Distribution in the Turkish Economy: A Post-Keynesian Econometric Analysis

This study aims to investigate the impact of import dependence on exports on the relation between aggregate demand and functional distribution of income in the Turkish economy. To achieve this, the model proposed by Stockhammer, Hein, and Grafl (2011) was employed and applied to the Turkish economy throughout 1988-2019. The findings indicate that the demand regime was wage-led in Türkiye throughout the sample period, and the integration of import content of exports into the analysis renders the demand regime even slightly more wage-led. Subperiod analyses show that even though the negative effect of a higher labor share in total income on net exports has doubled in absolute value from the 1995-98 subperiod to the 2008-18 subperiod, the positive effect of a higher labor share on private consumption expenditures did not only counterbalance but exceeded it, while its negative effect on private investment remained relatively small and constant over the subperiods. Our findings also show that the integration of import content of exports into the analysis also rendered all the subperiods moderately more wage-led.

Farmers' coping strategies to artisanal small-scale mining activities: welfare improvement or deterioration in Asutifi North District of Ghana?

PurposeIn Ghana, legal and illegal artisanal small-scale mining (ASM) activities have attracted the attention of the general populace and academia with varied opinions. This study examined how adopting the coping strategies for ASM operations affected the welfare of farm households.Design/methodology/approachPrimary data were solicited from respondents using a semi-structured questionnaire. This paper used the endogenous treatment effect model to quantitatively estimate whether or not farmers who adopt coping strategies for activities of ASM have improved or deteriorated welfare.FindingsThe results revealed that households adopted coping strategies such as diversification, social networking, land reclamation, borrowing, dependence on the market for food and resettlement in other communities. The endogenous treatment effect model results show that households that adopted land reclamation and social networking had improved welfare regarding consumption expenditure and food security compared to non-adopters. Conversely, diversification was associated with lower consumption expenditures and high food insecurity among adopters.Practical implicationsThis paper recommends that farm households in mining communities form cooperatives and farmer-based organizations to ensure improved access to joint resources for enhanced capacity to cope with ASM-induced shocks. There is a need for government and civil society organizations to encourage and support land reclamation measures.Originality/valueThis paper covers a broader perspective and deploys more than one welfare proxy, which has not been considered before in previous studies.