Household Budget Survey Data Research Articles

Indirect tax reform and the specification of demand: the case of Ireland

This paper examines the sensitivity of marginal tax reform analysis to changes in the underlying demand system. In particular, we analyse the sensitivity of results from Ahmad and Stern’s (J Publ Econ 25(3):259–298, 1984) marginal tax reform model to different specifications of Deaton and Muellbauer’s (Am Econ Rev 70(3):312–326, 1980) Almost Ideal Demand System (AIDS) and Banks et al.’s (Rev Econ Stat 79(4):527–539, 1997) Quadratic AIDS. Using Irish Household Budget Survey data, we show that tax reform results exhibit a low degree of sensitivity to changes in the underlying demand system. An adjustment for a mass of observed zero-expenditures in the data for certain goods produces most sensitivity in the tax reform results. Even in these cases, many of the tax reform recommendations remain constant. Including demerit good arguments in the tax reform model can substantially alter the tax reform recommendations relating to demerit goods. Notably though, when we include these arguments in the tax reform model, the results are particularly insensitive to changes in the underlying demand system.

When do relative prices matter for measuring income inequality? The case of food prices in Mozambique

Abstract Changes in relative prices of commodities consumed in different shares across income groups can be expected to alter real income differentials between these groups. Using Mozambican household budget survey and price data from 2002/03 and 2008/09, we show that once relative price increases are accounted for, inequality of real consumption increases substantially. We obtain this result by constructing a price deflator that reflects divergent price dynamics of different product categories. Since the main factors driving this result prevail in other developing countries, it is likely that inequality may be underestimated elsewhere.

Food Security and Household Consumption Patterns in Slovakia

We investigate the food security situation of Slovak households in terms of both access to food and quality of the diet consumed by estimating food demand system and diet diversity demand models using household budget survey data over the period 2004-2010. In most samples demand for meat and fish and fruits and vegetables is expenditure and own-price elastic. On average all five food groups investigated are found to be normal goods. Rural and low-income households appear more expenditure and price sensitive compared to the urban and high-income ones. Results from quantile regressions indicate that income has a positive while uncertainty has a negatively effect on the diversity of the diet as the effects are stronger in more vulnerable, low income and rural consumer subsamples. Overall the food security situation in Slovakia appears to have improved over time, since the country’s EU accession.

The effects of the energy price reform on households consumption in Iran

The substantial subsidizing of energy prices over the years has led to high energy consumption, inefficiencies, fiscal pressures, and environmental problems in Iran. To address the increasing socio-economic problems associated with the energy subsidies, the government embarked on an aggressive energy price reform through which energy subsidies were removed and cash handouts were given to all households in 2010. In this paper, I analyze the effectiveness of the energy price reform in Iran by estimating energy demand elasticities for households in different income groups. I apply a two-stage consumer optimization model and estimate the system of energy expenditures shares using the household budget survey data for the period 2001–2008. The results show that the overall price elasticities of demand are small, but income elasticities are close to one. The results also indicate heterogeneous responses to energy price and income changes in different income groups. Specifically, the urban households show stronger response to price changes, but rural households, particularly mid-income households, to income changes. These findings suggest that the current policy of price increases would not solely be able to reduce energy consumption and, therefore, it should be geared towards increasing energy efficiency through a series of price and non-price measures.

A Revenue-neutral Shift from SSC to VAT: Analysis of the Distributional Impact for 12 EU—OECD Countries

This paper assesses the distributional impact of a revenue-neutral shift from SSC to VAT in 12 EU-OECD countries. Using Household Budget Survey data, we simulate a 5-percentage-point SSC reduction funded by three alternative VAT reforms: an equal relative increase in all VAT rates, an increase in the standard VAT rate, and a shift to a uniform VAT rate. Our results suggest that all three reforms would be regressive in all 12 countries, that tax liabilities increase less for employees than for nonemployees, and that the uniform rate is the best for employees and the worst for nonemployees.

Eating and ageing: A comparison over time of Italy, Ireland, the United Kingdom and France

This research analysed household budget survey data from Ireland, the United Kingdom, France and Italy from 1985/1987 to 2004/2005 to determine how age groups differ in terms of food-related practices, how these patterns are changing and to see if these patterns differ across countries. Descriptive analysis and fractional multinomial logistic regression were used. Food practices seem to be changing over time across all age cohorts in Ireland and the United Kingdom; older people have different food practices now than they would have had a few decades ago. However, in Italy and France, food-related practices seem to be related to age and life course with older people eating out less as they age than they did when they were younger. If these trends continue, older people will continue to prepare their own meals to a greater extent in Italy and France in the future with the retention of home preparation skills, while the home preparation of food will continue to decline in Ireland and the United Kingdom. These trends have implications for the health and well-being of older people in those countries.

Data and Model Cross-Validation to Improve Accuracy of Microsimulation Results: Estimates for the Polish Household Budget Survey

We conduct detailed analysis of the Polish Household Budget Survey data for the years 2006-2011 with the focus on its representativeness from the point of view of microsimulation analysis. We find important discrepancies between the data weighted with baseline grossing-up weights and official statistics from other sources. A number of re-weighting exercises is examined from the point of view of the accuracy of microsimulation results and we show that using a combination of demographic calibration targets with several economic status variables or tax identifiers from the microsimulation model substantially improves the correspondence of model results and administrative data. While demographic re-weighting is neutral from the point of view of income distribution, calibrating the grossing-up weights to adjust for economic status and tax identifiers significantly increases income inequality. We argue that although data reweighting can substantially improve the accuracy of microsimulation it should be used with caution.

Dietary availability in elderly Portuguese households.

To identify dietary availability and its time trends in elderly Portuguese households. A set of four cross-sectional studies based on the Household Budget Surveys was used. The dietary data were described using the daily per capita availability of food and beverages, energy and selected nutrients (macronutrients, different lipid fractions and simple sugars). Differences between elderly household types and time trends were studied. Portuguese Household Budget Survey data from 1989/1990, 1994/1995, 2000/2001 and 2005/2006. Households with members aged ≥65 years were selected and categorized as solitary elderly female, solitary elderly male or couple (composed of one elderly female and one elderly male). While cereals, fats/oils, potatoes and sugar/sugar products decreased, an increase occurred in milk/milk products, fruits, bottled water, fruit/vegetable juices and soft drinks (P<0·05). The highest values for foods and beverages were mostly found in couples, while the lowest ones were from solitary males. Exceptions were observed for cereals, eggs, milk/milk products, vegetables, fruits and non-alcoholic beverages, higher in solitary females; and for sugar/sugar products and alcoholic beverages, higher in solitary males. Over time, total energy and carbohydrates decreased while proteins and saturated fatty acids increased (P<0·001). Lipids increased in solitary males and couples (P<0·05). Simple sugars increased in solitary males but decreased in solitary females and couples (P<0·05). The increases in fruits and vegetables in solitary females accord with a healthier food pattern, but overall imbalances in the macronutrient profile for all elderly households may imply a decreasing diet quality.

Residential energy consumption patterns and the overall housing energy requirements of urban and rural households in Finland

Abstract In this study, we analyze holistically the residential energy consumption patterns and the overall housing energy requirements of urban and rural households in Finland. We study separately three of the most common types of housing—apartment buildings, row-/terraced houses, and detached houses—and include private and the communal building energy as well as the amount of energy consumed by free-time residences. With this study, we add perspective to the ongoing discussion on the sustainability of urban versus rural living and that of different housing types. We employ Household Budget Survey data from Statistics Finland and data from the Finnish Forest Research Institute (Metla) to extract the actual energy purchases and convert them into energy units. Our key findings include five perspectives: (1) behavioral differences seem significant between different housing modes; (2) each housing mode appears to be less energy-intensive in rural areas; (3) including indirect energy purchases is essential when comparing different housing modes; (4) unit-of-analysis (m 2 , capita, household) selection strongly affects the results; and (5) the energy mixes vary significantly between the studied building types, changing from the predominance of non-renewables in apartment buildings to that of renewables in detached houses, which in turn has interesting carbon footprint implications.

Data and Model Cross-validation to Improve Accuracy of Microsimulation Results: Estimates for the Polish Household Budget Survey

We conduct detailed analysis of the Polish Household Budget Survey data for the years 2006-2011 with the focus on its representativeness from the point of view of microsimulation analysis. We find important discrepancies between the aggregate data weighted with baseline grossing-up weights and official statistics from other sources. A number of re-weighting exercises is examined from the point of view of the accuracy of microsimulation results. We show that using a combination of variables from the data together with a small number of outcomes from the microsimulation model substantially improves the correspondence of simulation results and administrative data. While demographic re-weighting is neutral from the point of view of income distribution, calibrating the weights to adjust for income sources and tax identifiers significantly increases income inequality. We specify a number of factors which ought to be considered in the choice of weight calibration targets. Data re-weighting can substantially improve the accuracy of microsimulation but it should be used with caution.

The Turkish Demand for Food

The main objective of this study is to identify main household demand parameters in Turkey with respect to different food groups. In addition, as for the importance of this study for Turkey, it reveals the expectation that despite advanced technological developments in the globalized world of today. This is important, because food shortage, insecurity, and consumption will continue to be a challenging problem in Turkey’s economy as well as in the global economy. In this study, price and expenditure elasticities were calculated by applying to the Almost Ideal Demand System (AIDS) approach to expenditure data for the food group acquired by the Household Budget Surveys (HBS) from 2002 to 2011. Household Budget Surveys (HBS) data were used in this study. Price and expenditure elasticities in Turkey under food group for divided five income groups were estimated using the An Almost Ideal Demand System (AIDS) approach. According to the findings obtained price and expenditure elasticities by food group for divided five income groups were calculated. Computed price elasticities using the AIDS model are were found to be in good agreement with economic theories. At that time, price elasticities are negative. Our analyses demonstrated that food group elasticities for all income groups examined in this study were normal goods. While the lowest price demand elasticity was observed in second %20 income group, the highest price demand elasticity was observed in fifth %20 income group. In line with this, it is possible to say that consumers are more responsive to price changes. In this respect, we can say that Although fifth %20 income group is more sensitive to food price changes, second %20 income group is less responsive to this food price changes.

Glacial geomorphology in Småland, SE Sweden

Sustainable diets, in particular vegetarianism, are often promoted as effective measures to reduce our environmental footprint. Yet, few conclusions take full-scale behavioral changes into consideration. This can be achieved by calculating the indirect environmental rebound effect related to the re-spending of expenditure saved during the initial behavioral shift. This study aims to quantify the potential energy use and greenhouse gas emission savings, and most likely rebound effects, related to an average Swedish consumer's shift to vegetarianism. Using household budget survey data, it estimates Engel curves of 117 consumption goods, derives marginal expenditure shares, and links these values to environmental intensity indicators. Results indicate that switching to vegetarianism could save consumers 16% of the energy use and 20% of the greenhouse gas emissions related to their dietary consumption. However, if they re-spend the saved income according to their current preferences, they would forego 96% of potential energy savings and 49% of greenhouse gas emission savings. These rebound effects are even higher for lower-income consumers who tend to re-spend on more environmentally intensive goods. Yet, the adverse effect could be tempered by purchasing organic goods or re-spending the money on services. In order to reduce the environmental impact of consumption, it could thus be recommended to not only focus on dietary shifts, but rather on the full range of consumer expenditure.

Probit Model of Higher Education Participation Determinants and the Role of Information and Communication Technology

In this paper we analyse the undergraduate and postgraduate higher education participation determinants in placecountry-regionSlovenia. Using a micro-level probit analysis we find the most important statistically significant higher education participation determinants in placecountry-regionSlovenia, and the most important differences between the determinants on the undergraduate and on the postgraduate level. We use the Slovenian statistical Household Budget Surveys (HBS) data for the reference years from 1998 to 2005. The HBS covers private households in place country-region Slovenia with the basic socio and demographic data for the household members observed within the surveys, data on income, assets and final consumption. In the probit analysis we focus on the determinants of the undergraduate and postgraduate higher education participation separately for different age groups. Based on the results of the three probit models we find six different determinants of the undergraduate higher education participation. The first two most important determinants are the availability of internet access in a household and education of parents. On the postgraduate level of education we also find six important determinants of higher education participation, with the first most important being the availability of information-communication technology, followed by the personal income.

How Do We Value Our Income from which We Save?

In this paper we analyze the relationship between the perception of income as satisfying household needs and saving rate of this household. Using the multinomial logit regression function we measure the probability of a household to fall into one of the groups categorized by the subjective perception of income in relation to the current household disposable income. The variable specified for the valuation of income is income perception, defined as a class of observed disposable income located on the scale of the subjectively satisfying income. Factors determining the perception of income are: gender and education of the household head, family characteristics, source of income and place of residence. The analysis of relations between the income perception and the household saving rates shows that the perception of income affects both the household observed and predicted saving rates. The research is based on the Household Budget Surveys data for Poland in 2008.

Who Borrows and Who May Not Repay?

We use Household Budget Survey data to analyze the evolution of the household credit market in the Czech Republic over the period 2000–2008. We next merge our data with the Statistics on Income and Living Conditions in 2005–2008, in order to test the validity of the standard debt burden measure as a predictor of default. We propose an alternative indicator – the adjusted debt burden (ADB), defined as the ratio of loan repayments to discretionary income, constructed as net income minus the living minimum, which turns out to be a superior predictor of default risk. Limited by the data, we use a fairly broad concept of default, namely, the inability to make loan repayments on time. Based on the distribution of default risk across the levels of the adjusted debt burden, we suggest that a 30% ADB threshold should be used as the definition of overindebtedness, with an average default risk of 17%. Finally, we show that overindebtedness and local economic shocks are closely related, suggesting that default risk should be always considered in the context of regional economic conditions.

How Do We Value Our Income from Which We Save?

In this paper we measure the probability of a household to fall into one of the groups of households categorized by the subjective perception of income from which households save at different rates. The multinomial logit regression function is used to analyze the degree of satisfaction from disposable income. The variable specified for the valuation of income is income perception, defined as a class of income subjectively perceived as fulfilling the household needs in relation to the current disposable income of the household. Sufficient income is the reference category in the analysis. Factors that determine the perception of income are: gender and education of the household head, family characteristics, source of income, place of residence, and quintile group of disposable income. The predicted values of income perception, obtained from the multinomial logit regression, are related to the saving rates of households. The analysis shows that the saving rates of households are positively correlated not only with the observed values of income perceived as hardly sufficient, sufficient or good, but also with the predicted values of income perception. The research is based on the Household Budget Surveys data for Poland in 2008. The sample size is 37,316 households.

Household Size and Income Poverty in Zanzibar

&#x0D; This paper uses the 2004/2005 Zanzibar Household Budget Survey data to probe the relationship between household size and poverty. In doing this the paper ensures that poverty measurement involves adjustment for adult equivalent scales, and that the measures are robust to the variation of poverty line and for a class of poverty indices that satisfies the generally accepted axioms. Further, the paper makes adjustments for economies of scales when measuring poverty at the household level as recommended by Anand and Murdoch (1996). The paper finds that larger households suffer more poverty. However, there is no direction of causality is established, thus it remains unclear whether it is poverty that leads to large household size, or that it is large household size which leads to poverty. A review of literature however indicates that there are economic circumstances that impel poor households to have high fertility rates. However collective impact of high fertility rate is adverse in various ways, including environmental pressure both globally and within the local fragile environment, increased inequality and immiserized growth. This means that at the community, national and global level there are good reasons to find ways to lower fertility rates. This paper further argues that the only way to have a non-coercive and yet effective policy to lower fertility rate is for such policy to seek to alter the economic circumstances that make high fertility a rational choice at the household level; it is not enough to simply make family planning program available to the households.&#x0D;

Monitoring diet and diet-related chronic disease risk factors in Finland

Health and dietary monitoring has a long history in Finland. The aim of this review is to summarise the main sources of Finnish dietary information including food balance sheets, household budget survey data, questionnaires related to dietary behaviour and risk factors of main chronic diseases as well as dietary surveys. According to these sources, dietary behaviour and food choices have changed considerably during the last decades. For example, the total fat intake (E %) has decreased remarkably from nearly 40 % in the late 1960s to close to 30 % in 2007. Furthermore, the type of fat consumed has changed noticeably due to the increased popularity of oil used in cooking and the large variety of softer spreads available. There has also been a notable decrease in intake of salt, and a multiple increase in the consumption of fruits and vegetables since the 1970s. The future challenges of dietary monitoring include keeping the participation rates in dietary surveys at acceptable levels, controlling under/over-reporting of diet, developing a national monitoring system for children and adapting to international changes and requirements to harmonise dietary monitoring in Europe.

Income Elasticity of Health Expenditures in Tanzania: An Application of Concentration Curves

Income elasticity of demand is important because it gives insight into the response of consumers to changes in real income, whether this emanates from changes in actual income or from the changes in the price of a commodity. Income elasticity of health is particularly important because it gives an indication on how people would react to the changes in the costs of medical care. The design of health care financing strategy requires an understanding of the way people responds to the cost of healthcare. Moreover, as suggested by Deaton and Zaidi (2002), a decision on whether household expenditure on health should be included in the consumption aggregate that is used for poverty analysis should depend on the income elasticity of demand for health. In the Tanzania Mainland households’ budget survey health expenditure is routinely excluded from consumption aggregate used for official poverty estimate but income elasticity of health has never been estimated to assess whether this exclusion is warranted or not. This paper offers some ordinal estimates of income elasticity of demand for health in Tanzania. This is done by employing the approach proposed by Kakwani (1977) which uses the concentration curves and the Lorenz curves for making inferences on income elasticity. This approach has the advantage in that it suffers no risk of introducing errors emanating from functional misspecification and it also gives global measure of elasticity, unlike the econometric estimation that gives elasticity only at a specified income level. The 2000/2001 and 2007 Household Budget Survey data are used for estimation. The finding is that income elasticity of demand for health is largely between zero and one, except for the population beyond the 0.8 percentile for the years 2000/2001 which has income elasticity greater than one

Marine Parks and Household Poverty in Tanzania: A Baseline Analysis

This paper offers a baseline data for future assessment of the extent to which Marine Parks improve households’ welfare and reduce poverty in the Tanzanian Coastal area. Household Budget Survey Data was collected from 24 villages along the coast of Tanzania Mainland and Zanzibar. Axiomatically preferred poverty indices are used in this paper to assess relative poverty between villages currently in the Marine Parks and villages that are outside the Marine Parks. The analysis is buttressed by stochastic dominance tests to ensure that the results are robust to any reasonable alteration of poverty line. The paper finds widespread poverty but no notable difference in poverty between villages in the Marine Park Areas and villages outside the Marine Parks. This is important baseline information for future analysis of the impact of Marine Parks on households’ welfare.