Consumption Expenditure Of Households Research Articles

Consumption Expenditure Patterns and Food Security Dynamics in Nigeria

Food insecurity remains a critical issue globally, as highlighted by the Sustainable Development Goals (SDG 2). In 2023, nearly 25 million Nigerians faced food insecurity due to factors like insurgency affecting agricultural activities. This, therefore, worsens the food insecurity in the country. Thus, this study investigates the dynamics between household consumption expenditure patterns and food security in Nigeria over a decade (2010-2019). This was done by analysing four waves of secondary panel data of 4,000 nationally representative households of the Nigeria General Household Survey GHS - Panel collected by the National Bureau of Statistics in four waves over ten years from 2010 to 2019. Analytical tools used were descriptive statistics and the Food Security Index. The results of the consumption patterns of the respondents showed that the majority of the respondents were in the lowest band of per capita total expenditure and sectoral expenditures. The ratio of food secure to food insecure averages around 30% to 70% with a food security (surplus) index of 1.26 and food insecurity (shortfall) index of 0.53. Nigeria was food insecure during the period. The analysis concludes that boosting agricultural productivity, improving infrastructure, and addressing corruption are essential to enhance food security in Nigeria. The government is recommended to prioritize long-term strategies for food production, support vulnerable households, and leverage technological advancements to increase agricultural productivity. This study underscores the need for comprehensive policies to address the multifaceted challenges of food insecurity in Nigeria.

Effect of digital financial inclusion on banking for the poor in African emerging economies

PurposeThis paper studies the effect of digital financial inclusion in banking on the poor and deprived populations of African emerging economies from 1997 to 2023.Design/methodology/approachAutomated teller machines, mobile payments and mobile money transactions measure digital financial inclusion. Household consumption expenditure proxies poverty reduction. The autoregressive distributed lag analyzes the study.FindingsThe results indicate that automated teller machines, mobile money transactions and financial deepening positively affect poverty reduction, while mobile payments negatively affect poverty reduction. Digital financial inclusion decreases poverty via increased investment and empowerment.Research limitations/implicationsDigital financial products and services should be expanded to all population segments in the economies. The governments should improve the quality and quantity of institutions that guarantee the operation of digital financial activities through the enforcement of law and order. The quality and quantity of mobile money transactions and financial deepening should be increased. The costs and charges involved in using automated teller machines and mobile payments should be regulated to relieve the burden on the population. The government should facilitate access to digital financial services via power supply, transport and telecommunication networks. Banks and telecommunications service providers should improve the payment system network to ensure cost-effective, convenient and secure financial service delivery. The digital infrastructure and financial services markets should be enhanced to fully capture the gains of financial inclusion and reduce poverty.Originality/valueA literature review provides studies with conflicting findings on the effect of digital financial inclusion on poverty reduction. This study supports that digital financial inclusion decreases poverty.

Detection of outliers in survey–weighted linear regression

ABSTRACT Regression diagnostics help identify influential data points in a model. Detecting outliers in complex survey design data involving stratification, clustering, and unequal probability sampling is difficult due to the presence of masking, where one outlier makes it hard to detect others. The masking factor for survey–weighted linear regression is developed and applied to analyzing the Household Consumer Expenditure dataset of 68th round of the National Sample Survey Organization survey of India. Regression parameters are calculated before and after detection and removal of outliers. The standard error of regression parameters for survey-weighted least squares models is reduced by 2% for the intercept, 5% for variable “meat” (X 5), 4% for “served processed food” (X 9), and 4% for “packaged processed food” (X 10). Inference alters the significance of regression coefficients of the variable “served processed food” (X 9) leading to the emergence of significance. There is no change in inference for other variables.

Pengaruh Kenaikan Harga BBM Subsidi Terhadap Pengeluaran Konsumsi Rumah Tangga di Kabupaten Tulungagung

The government's policy to increase the price of subsidized fuel in September 2022 has affected the economy in Indonesia. Tulungagung Regency as one of the regions in East Java also felt the impact of this policy. The increase in the price of subsidized fuel makes household consumption expenditure also increase. This study aims to fill the gap in the literature and to determine the effect of the increase in the price of subsidized fuel oil (BBM) on household consumption expenditure in Tulungagung Regency. The approach used in this research is a quantitative approach with the type of research used is associative research. The data source used in this research is secondary data derived from the official websites of the Ministry of Energy and Mineral Resources, Pertamina and BPS Tulungagung Regency in the period 2008-2023, as well as other supporting references such as books, research journals, articles, theses, and news. Data collection techniques in this study are literature studies and documentation with data analysis techniques using simple linear regression. The results of this study indicate that there is a significant influence between the increase in subsidized fuel prices on household consumption expenditure in Tulungagung Regency, with a coefficient of determination of 74,7%.

The Impact of Consumer Credit on Household Education Investment — Empirical Research Based on CHFS Data

This article employs the 2019 China Household Finance Survey data to empirically investigate the impact of consumer credit on household education investment. The research reveals that an increase in consumer credit significantly boosts household education investment. Furthermore, the study examines the mechanisms through which consumer credit influences this investment, identifying that it operates by affecting household consumption and total expenditure. The effects are particularly pronounced in households that are risk-averse and have higher incomes. This article offers fresh insights into the interplay between consumer credit, household consumption, and education investment, thereby suggesting new avenues for research on household education investment.

Ethnicity, social connectedness, and the rural-urban food continuum: Food security among urban informal settlement dwellers in Kenya

Rapid urbanization in developing countries is increasingly becoming an important development issue due to its negative effects on poverty and food insecurity in cities. This study investigated the determinants of the food insecurity gap among urban households living in informal settlements in Nairobi, Kenya, and the role of social connectedness and the rural-urban food continuum. Using panel data collected from 385 households using a two-stage cluster sample design, the study applied panel data regression and decomposition models to understand the factors affecting food insecurity access scores and weekly household food consumption expenditure. Descriptive results showed a score of 8.00 for the pooled sample on the household food access scale, with households from other regions having a lower score (7.94) than those from the Western region (8.32). 43 % of households from Western Kenya engaged in farming in rural areas (43 %) and had higher social connectedness (45 %) than households from other regions. The results indicate that dependency ratio, income, savings, social connectedness, rural visits, and dietary knowledge are significant factors impacting food security. Decomposition of levels and change in food insecurity revealed that endowments from the random effects model contributed to reducing the food insecurity gap between households originating from the Western region and those from other regions. The study highlights the importance of considering regional factors and promoting social connectedness and rural-urban linkages in addressing food insecurity in informal urban settlements.

Threshold Effect of Financial Inclusion on Poverty Reduction in Africa: Does institutional quality play a role?

ABSTRACT In Africa, poverty levels are still very high, especially with the advent of the COVID-19 pandemic, despite efforts by governments and development partners to address it. Financial inclusion has been identified as an important concept in fighting poverty due to its ability to increase the income level of households. This study sought to estimate the threshold level at which financial inclusion, aided by strong institutions, will lead to poverty reduction in Africa, using Hansen’s threshold estimation method, covering a period of 2004–2020. The Hansen threshold estimation method uses an endogenous approach to identify threshold values, which eliminates deterministic process by using a systematic approach, as compared to the linear methods of sample-splitting of threshold-level specifications by other methods. This therefore makes the Hansen threshold estimation method robust in threshold estimations compared to other methods. The study found double threshold values of 0.0534 and 0.341, indicating that a financial inclusion value below 0.0534 would increase household consumption expenditure, leading to poverty reduction. However, a threshold value between 0.0534 and 0.3141 has a negative impact on poverty reduction. Furthermore, beyond a threshold value of 0.3141, financial inclusion will improve household consumption and as such reduce poverty in Africa. The study also established a threshold value of institutional quality index of −1.6325, indicating that below that institutional quality index, financial inclusion will have a negative impact on household consumption as well as poverty reduction in Africa. The results further indicated that dependency ratio, gross national income, interest rate, inflation, education, and government expenditure contribute significantly to poverty reduction in Africa. It is recommended that development partners, central banks and governments in the region should consciously develop and implement financial literacy policies, with the collaboration of all financial institutions that are aimed at promoting financial inclusion due to its ability to end poverty.

Analisis Pola Konsumsi di Indonesia sebagai Indikator Peningkatan Kesejahteraan Masyarakat

Household consumption expenditure is a key indicator that can describe the welfare of households in a region or country. Household welfare as measured by consumption is related to how the household meets its basic needs, both food and non-food. The higher the proportion of consumption expenditure for non-food, the better the standard of living or household welfare because theoretically food consumption has a maximum limit, while non-food consumption has no maximum limit (BPS, 2020).

Financial inclusion toward economic inclusion: empirical evidence from China’s rural household

PurposeFocusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial inclusion index of four essential financial services: savings, digital payments, credit and insurance. We identify factors influencing financial inclusion among Chinese rural households and assess the effects of financial inclusion on household welfare.Design/methodology/approachWith the entropy method, we use data from the 2019 China Household Finance Survey to assess financial inclusion levels in rural China. Determinants and their impact on welfare are analyzed through probit and ordinary least squares models, respectively. Propensity scoring matching is applied to address potential endogeneity.FindingsWe reveal that rural households exhibit limited usage of formal financial services, with notable regional disparities. The eastern region enjoys the highest financial inclusion and the central region lags behind. Household characteristics such as family size, education level of the household head, income, employment status and financial literacy significantly influence financial inclusion. Financial inclusion positively impacts household welfare as indicated by household consumption expenditure. The use of different types of financial services is crucial with varying but significant effects on household welfare.Originality/valueThis study offers valuable insights into China’s rural financial inclusion progress, highlighting potential barriers and guiding government actions.

ECONOMIC RESILIENCE OF G20 COUNTRIES DURING COVID-19 PANDEMIC AND THE IMPACT OF RESILIENCE ON THEIR ECONOMIC GROWTH

This paper is an effort to understand the aftermath of global health crisis that unleashed economic turbulence, the world over, due to COVID-19. A pandemic of such huge dimension and consequences not only caught everyone unaware but the epitome of science and medicine advancement also could not lessen the speedily advancing health hazards. All countries had to put in Herculean efforts to overcome this crisis but India being the most populous had to face a humongous task. Initially the challenge was how one can resist the economic shock and later it was how fast one can overcome the crisis. This paper compares the performance of Indian economy with some prominent G20 countries with respect to unemployment rate, growth rates, foreign direct investment and economic inequality. We compare 2019, considered as normal year with 2020, the hardest hit year due to Covid 19. We have also tried to explore the resilience index of all G20 countries, by calculating both the resistance index and the recovery index of the crisis. Finally, we explore the impact of resilience index along with household consumption expenditure, capital formation and exports on the growth rate of real Gross domestic product of G20 countries. We adopt an econometric approach, using multiple linear regression for analysis. Based on our analysis, appropriate proposals have been formulated for future course of actions that will enhance the future economic prosperity of G20 countries.

Housing Market and Household Consumption in Urban China: A Debt Perspective

Urbanization precipitates substantial economic transformations, with housing markets playing a pivotal role. The expansion of cities escalates housing demand, subsequently increasing housing debt, which is a crucial factor influencing household consumption. This study utilizes data from six rounds of the China Family Panel Studies (CFPS) spanning 2010 to 2020 to investigate the impact of housing debt on household consumption in urban China. Given the dynamics changes in housing debt status, as well as the endogeneity problems caused by reverse causality and selection bias between households’ debt decisions and consumption behavior, this study employs both the difference-in differences with multiple periods and groups (DIDM) model and the two-way fixed effects model. The results show that the average consumption expenditure of households with housing debt is 14% higher than those without. A 1% increase in housing debt size correlates with a 0.011% rise in consumption. Moreover, this positive effect is more pronounced among low-income households and those with older household heads, as well as those owning multiple properties. Compared to non-durable consumption, the impact of housing debt is more substantial on durable consumption. Further mechanism analysis reveals that the effect of housing debt on household consumption is primarily driven by an increase in housing assets, spurred by the rising housing prices. This study underscores the importance of integrating housing debt management within the framework of sustainable urban development, which not only ensures equitable access to housing but also fosters the promotion of sustainable consumption.

Discretionary household consumption expenditure in the UK: measurement and evaluation

ABSTRACT The current cost-of-living crisis which is afflicting several countries has hastened the need to be able to distinguish between essential and inessential items of spending. Hence, the principal purpose of this paper is to develop a series on UK discretionary household consumption expenditure through making maximum use of publicly available data that are provided by the Office for National Statistics. The Family Spending workbooks offer information on the weekly consumption patterns of the ten income deciles, while the publication, Consumer Trends, contains quarterly time-series data on the expenditure by the entire household sector on different goods and services. From an analysis of both types of data, we identify 28 three-digit COICOP categories of consumption as being discretionary, constituting, on average, approximately 20% of total domestic household expenditure over the interval, 1985Q1 – 2019Q4. Our approach towards constructing a series on discretionary consumption receives vindication from subsequent empirical results, which show that this variable enjoys a more significant and stable relationship with a reputable measure of consumer confidence than each of the traditional aggregates to be found within Consumer Trends, i.e. spending on durable goods, semi-durable goods, non-durable goods, and services.

Do remittances mitigate poverty? Evidence from selected countries in Africa, Asia and Latin America

The overall objective of the Sustainable Development Goals is to end poverty in all its manifestations by 2030. To achieve this, international remittance inflows have been identified as crucial external financing, especially for developing countries, to secure the resources needed to improve the living conditions of the poor in these countries. It is on this premise that this study investigates the nexus between remittances and poverty in selected countries in Asia, Africa and Latin America, given that these regions receive the highest amount of remittances globally. The study uses annual data on 38 top recipients of remittances between 1990 and 2021. To ensure the robustness of the results, the study employs two indicators of poverty: household consumption expenditure and poverty headcount. On the methodological front, the study addresses the issue of cross-sectional dependence in a panel study and also corrects for endogeneity, using both static and dynamic methods of analysis, respectively. Empirical findings from the cross-sectional dependence test confirm the interdependence of countries in the study. Interestingly, the study confirms the optimistic view that remittance reduces poverty in the selected countries. This finding is consistent for the two poverty indicators regardless of the methodology adopted. The study concludes that remittance inflows play a pivotal role in alleviating poverty in the selected countries. Based on the findings, governments in the three regions are advised to devise appropriate policies and structures that can support and channel the proceeds from remittances to productive ventures to reduce the incidence of poverty in their respective countries.

Региональные особенности доходов и потребительских расходов населения в Канаде

In the confrontation between the global West and the global South, Russia found itself directly on the fault line. The confrontation leads to changes in the world economy, which, of course, have an impact on the standard of living of the population. It becomes relevant to study this influence, both in Russia and in countries that impose economic sanctions against it. This study provides a brief analysis of household income and consumption expenditure in Canada for 20002022 across the provinces of the country. Based on the data obtained, a high degree of social support for Canadian citizens from the state was revealed, especially in areas densely populated by indigenous peoples. The conditional division of the country according to the standard of living of the population into four geographical sectors is determined: northern, western, central and eastern. It has been established that throughout the entire period under review, the indicators of the standard of living of citizens in the northern provinces are the highest, and in the eastern provinces the lowest in Canada. At the same time, about two-thirds of the total population of Canada live in the eastern provinces, and the Northern provinces are very sparsely populated (less than 1% of the total population). It has been recorded that relatively high incomes and savings of the population are not a determining factor in the country for choosing a place of residence. Much depends on other indicators of the quality of life of people, as well as on the local mentality, traditions and culture.

Fiscal Policy And Poverty In The Southern African Customs Union: The Case Of Frontier Technology Readiness Index and Skills

The study examines the relationship between fiscal policy, the level of poverty, and the frontier technology readiness index (skill) in the Southern African Customs Union over the period of 2012 to 2022. The technique of pooled ordinary least squares was used to ascertain the empirical findings, while the LLC and IPS established the stationarity of the variables. The empirical findings show that government expenditure on education, indirect taxes, and the skills index directly affect household consumption expenditure significantly and, by implication, reduce poverty. However, the interaction of government expenditure on education and skills significantly reduces household final consumption expenditure. The essence of the study is that the respective government in the Southern African Customs Union should harness efforts towards integrating relevant skills into the educational system in light of the 21st-century technology revolution. It is admitted that previous studies have largely concentrated on issues such as income inequality, financial inclusion, government expenditure program in addressing the problem of poverty in developing economies, this study, while observing the crucial role of fiscal policy, evaluates the effect of a frontier technology readiness index, skills, in abating the severity of poverty in the region.

The Impact of Workers’ Remittances on Household Consumption Expenditure in Nepal: A Time Series Analysis

The Impact of Workers’ Remittances on Household Consumption Expenditure in Nepal: A Time Series Analysis

한국의 소비불평등 요인분해에 관한 연구

Purpose: This study examines the determinants of household consumption expenditure and quantifies their contribution to within group inequality by gender of household head in South Korea.
 Research design, data, and methodology: This study first decomposes total inequality into within and between inequality by gender of household head. It also examines the association between a vector of household demographic and socioeconomic characteristics and household consumption expenditure in an attempt to identify how much inequality can be attributed to each of explanatory factors. This study empirically draws upon the recent national representative dataset, Survey of Household Finance and Living Conditions (SFLC) 2 021 c ollected b y Korea Statistical Office.
 Results: According to the present study, inequality in 2021 in South Korea was found to be mainly dominated by inequality within population sub groups. Examining the determinants of household consumption inequality, it shows that factors and their conributions are different between male and female headed households. For instance, whilst the type of job occupation of a head appears to have a large impact on inequality within male headed households, it is found to have marginal contribution compared to within female headed households (25.2% vs. 7.4%). In case of household demography, it is observed as the second largest factor increasing within inequality among female headed households (31.2%) whereas its contribution to inequality within inequality among male group was relatively small (18.6%).
 Implications: Our study suggests that target specific investigation and deep structural understanding need to be made on the different characteristics of within inequality as reflected by the different role of factors and their contributions. Amongst, the different inequality impact of higher education might reflect that the expansion of higher education had a relatively lower impact on the living stand of female group than that of its counterpart, male group. Finally, the discriminatory barriers (e.g. job occupation) against female may reduce within inequality, it could widen total inequality, worsening distribution between male and female groups.

Determinants of Household Consumption Expenditures in Turkey: Evidence from Autoregressive Distributed Lag Model

Davranışsal iktisat yaklaşımı ile tüketici davranışları incelendiğinde karar alma süreçlerinde psikolojik önyargıların varlığı bu alanda yapılan araştırmalar sonucunda görülmektedir. Geleneksel iktisada dayalı yaklaşımlar ve modellerin savunduğu rasyonalitenin aksine, karar alıcılar bilişsel önyargıları ile hareket ederek irrasyonel davranış sergileyebilmektedirler. Bu yaklaşım ile Neo-klasik İktisadın varsayımları tamamıyla reddedilmemekle birlikte bilişsel önyargıların dikkate alınması gerektiğini vurgulamaktadır. Bu bağlamda çalışmada giriş bölümünde davranışsal iktisat kavramına değinilmiş olup daha sonra literatürde yer alan çalışmalar incelenmiş ve tüketici güveni ve tüketim harcamaları ilişkisine değinilmiştir. Son olarak araştırmanın metodoloji kısmında bir zaman serisi analizi yapılarak değişkenler arasındaki eş bütünleşme ilişkisi ortaya konulmuştur. Veri seti olarak 2004Q1-2021Q3 dönemini kapsayan üçer aylık Zincirlenmiş hacim yöntemiyle hesaplanan GSYH ve yerleşik hane halklarının tüketimi, tüketici güven endeksi, tüketici fiyat endeksi verileri kullanılmıştır. Tüketim harcamalarının bağımlı değişken olduğu gelir, tüketici güven endeksi ve tüketici fiyat endeksi bağımsız değişkenler olarak modele eklenmiştir. Değişkenler arasındaki kısa ve uzun dönemli ilişkinin belirlenmesi maksadıyla ARDL sınır testi yaklaşımı kullanılarak incelenmiştir. Sonuç bölümünde davranışsal iktisat yaklaşımı perspektifinden tüketicinin güveninin tüketim harcamalarına olan etkisi analizden elde edilen bulgular ışığında değerlendirilmiştir. Ayrıca çalışmanın amacı doğrultusunda güven olgusuna yönelik tüketicilerin harcamalarındaki yerine vurgu yapılmıştır.

Does an economic crisis deflate education bubble and inequality? Lessons from South Korea 1997–2020

Rapid education expansion has been a main driver of the remarkable economic growth in South Korea for last decades. However, in recent times, its excessive education credentialism is considered a hurdle against further developments. This study examined whether education bubble and inequality decreased during the Asian Financial Crisis 1997–98, the Global Financial Crisis 2008–09, and the COVID‐19 pandemic 2020. It tracked quarterly distributional changes in private education expenditure of Korean households with Changes‐in‐Changes. The findings indicate that Korean households postponed private education expenditure cut in the first quarter of the crises to prevent their children from falling behind in severe education competition. Then, they temporarily downsized it in the second quarter. During the pandemic, vulnerable students experienced higher fluctuations in private education expenditure than they did in previous crises closely related to disproportionate effects of the pandemic on household income and consumption expenditure. Therefore, this study suggests more expansionary measures for disadvantaged students to recover from a learning loss and improving the public education system as a fundamental measure to mitigate severe private education dependency.

Associations of multimorbidity with body pain, sleep duration, and depression among middle-aged and older adults in China.

Multimorbidity, body pain, sleep disturbance, and depression are major clinical and public health challenges. This paper aimed to examine the associations of multimorbidity with body pain, sleep duration, and depression; and whether the associations varied by socioeconomic status. Data was derived from four waves of the nationally representative China Health and Retirement Longitudinal Study (CHARLS), including participants aged 45 years and older in 2011. 12 physical non-communicable diseases and 1 mental chronic disease were used to measure multimorbidity. Educational attainment and annual per-capita household consumption expenditure were employed as proxies for socioeconomic status. Of the 16,931 participants aged 45 + years old, the proportion of people with multimorbidity was 37.87% at baseline. The number of multimorbidity increased with older age and higher socioeconomic status. Multimorbidity was associated with more body pain (incidence rate ratio (IRR) = 1.53, 95% CI = 1.45-1.61), and decreased sleep duration (β = -0.26, 95% CI = -0.36--0.15). Furthermore, multimorbidity was associated with increased depression risks (odds ratio (OR) = 1.54, 95% CI = 1.44-1.64, adjusted for sociodemographic variables), with the mediating effects of the number of body pain and sleep duration. The associations between multimorbidity and depression persisted among different socioeconomic groups. Multimorbidity was associated with increased body pain, decreased sleep duration, and further led to increased depression risks. It is necessary to pay attention to the multimorbidity of middle-aged and older adults, relieve their body pain, guarantee sufficient sleep, so as to reduce depression risks.