Private Household Consumption Research Articles

Life Cycle Assessment of Consumption Patterns – Understanding the links between changing social practices and environmental impacts

As we are still not on track to achieve environmental sustainability through technological change, we need to further stress the importance of understanding routinized types of behaviour by private households and the environmental assessment of corresponding consumption of resources. Social practice theories allow us to understand the constitution of human activity and its embeddedness in society. In transformation research, the relevance of social practice theories has been recognized. However, there is still a lack of understanding regarding the conditions under which practices change substantially and what kinds of tools and governance approaches are suitable to foster change in social practices. We therefore propose a novel way to address the transformation of consumption patterns of private households by a) connecting social practice theories to life cycle assessment for a quantitative environmental evaluation of transformation processes and b) using narrative approaches to understand the links between several social practices and conditions for change. An illustrative study of a bottom-up neighbourhood initiative shows how specific meanings and values (expressed, for example, through meanings of “enough”) affect several social practices from different consumption categories (nutrition, daily mobility, travelling). Environmental assessments further show that changing social practices across consumption categories can substantially decrease environmental pressures from private household consumption, especially in the field of nutrition. The understanding of how various social practices are connected in a nexus through narratives embodying deeper meanings point to novel ways of fostering change and the relevance of social practices related to urban or neighbourhood initiatives as an entry point to a more sustainable way of living.

Active sport tourism consumption by German private households

Recent studies on the economic dimensions of sports and physical activity in Germany have revealed that sport-related tourism is one of the important contributors to private household consumption. Due to a lack of representative and large-scale data sets, this topic has never been displayed in detail before. By using computer assisted telephone and web interviews, we collected a total data set of n=19,396 persons living in Germany. The expenditures for active sport tourism were isolated, which is understood as travelling to take part in different sporting activities. Data are provided on the overall spending of German households for sport trips, with skiing (€ 3.4 bn) and scuba diving (€ 2.2 bn) being the sports with the highest consumption. We differentiate 71 types of sport and provide data on the most important 20 types. German households undertake 28 million trips each year and spend on average € 460 for each trip. This adds up to € 12.8 bn, which is a significant contribution to the economic dimension of sport. Austria, the Netherlands and Spain are the most important destinations for German households regarding active sport trips. The paper provides useful data to shed further light on the active sport tourism market.

Analysis of the Impact of Changes in the Functional Distribution of Income on Aggregate Demand

Analysis of the Impact of Changes in the Functional Distribution of Income on Aggregate Demand

Climate Change on Agriculture in 2050: A CGE Approach

Purpose Agriculture plays a very critical role in terms of global food security and provides livelihood to over 30 percent of the world population. This study investigates the economic impact of climate change on agriculture in 2050. Design/Methodology/Approach We employ the global, multi-sector computable general equilibrium (CGE) approach. Using the GTAP Version 10 database whose base year is 2014, we project the global economy to 2050 relative to 2014. The main focus is on the role of economic players’ adaptation response to climate change, and the possible changes in production quantities and market prices. We implement a baseline growth path simulation that does not account for climate change effects, and two counter-factual policy simulations, which account for the impacts of climate change. Findings Simulation results reveal that extreme climate change will negatively affect the market prices of agricultural commodities, private household consumption, trade balance, GDP, and welfare for most of the regions in this study. Further, developing economies are found to be affected more by climate change compared to developed nations. Research Implications The study suggests that climate change adaptation and mitigation policies be specific to every stage in the farm value chain (FVC) with more emphasis on production and market integration segments.

Cumulation of Cross-Section Surveys: Evaluation of Alternative Concepts for the Cumulated Continuous Household Budget Surveys (LWR) 1999 Until 2003 Compared to the Sample Survey of Income and Expenditures (EVS) 2003

Im Rahmen der Weiterentwicklung des Systems von Haushaltsstatistiken und unter Berucksichtigung der EU-Erfordernisse mit neuen EU-SILC Ansatzen wird die Kumulation von Querschnitts-Stichproben zu einem integrierten Informationssystem diskutiert und gefordert. Insbesondere sollen bei dem Umbau der Haushaltsbudgeterhebungen einerseits jahrliche Ergebnisse produziert werden, sowie andererseits in mehrjahrigem Abstand ausreichend hohe Stichprobenumfange zur Verfugung stehen, um tiefgegliederte Analysen zu ermoglichen. Die vorliegende Studie ist dazu ein Beitrag mit einer generellen konzeptionellen Fundierung fur die Kumulation von Querschnitten und einer Anwendung, die im Besonderen das neue Kumulationskonzept evaluiert mit grosen offiziellen Stichproben/Umfragen: der Querschnitts-Kumulation von funf jahrlichen Laufenden Wirtschaftsrechnungen (LWR), die verglichen wird mit der funfjahrigen Einkommens- und Verbrauchsstichprobe (EVS) des deutschen Statistischen Bundesamtes. Dabei wird die Sensitivitat des Kumulationskonzeptes mit seinen Alternativen evaluiert fur ausgewahlte Gruppen von Konsumausgaben privater Haushalte. Eine Empfehlung beschliest diese Studie.

Income Distribution and Growth Models: A Sectoral Balances Approach

This article revisits the macroeconomic foundations and political economy of national growth models. It argues that the neo-Kaleckian model, which inspired the emergent growth model perspective and focuses primarily on the functional income distribution, can be usefully complemented by theories of private household consumption that focus on the personal distribution of income. The examples of the export-led and debt-led growth models of Germany and the United States, respectively, show how institutional differences help to explain why different countries developed different patterns of income distribution and how income distribution and institutions interacted to generate financial imbalances in different sectors of the economy (i.e., the private household sector, the private corporate sector, and the government sector).

Paying Our Way in the World? Visible and Invisible Dangers of Brexit

ABSTRACTThe UK economy has long been associated with a weak balance of payments, reflecting an underlying growth model reliant on private household consumption. A deficit in goods trade, chiefly with the EU, has been offset by surpluses in services trade and foreign investment earnings. The Single Market provided wider markets for the UK, but did not fundamentally alter Britain's structural weaknesses. The Brexit vote took place against the background of Britain running its largest peacetime current account deficit. Financing Britain's external position represents a key challenge post-Brexit. Post-Brexit models for Britain partially address this. Any emergent model will critically depend on the nature of the Brexit deal with the EU, not least in terms of the impact on financial services and on supply chains. This paper sets out the recent evolution of the UK's current account position, particularly in relation to the EU. It then highlights particular areas of potential disruption from Brexit and sketches out scenarios of possible evolution of the Britain's external position in response to this.

Determinants of citizen acceptance of environmental policy regulating consumption in public settings: Organic food in public institutions

Increasingly, providers of institutional catering consider moving to the procurement of organic food. Although ample research has investigated the determinants of consumption of organic foods in private households, such consumption in institutional settings raises questions of citizen support rather than consumer choice. Therefore, the purpose of this article is to analyse the determinants of citizen support with regard to increasing the share of organic produce in public catering. A model is proposed that explains attitude to the procurement of organic produce in public kitchens by life values, attitudes to the environment, personal and social norms, and the use of organic produce for private household consumption. Data were collected by an online survey representative of the overall population in terms of major demographics in Denmark (n = 978). Results indicate that personal norms regarding the use of organic food affect attitudes toward the use of organic produce in institutional settings, and that this effect is partly mediated by own purchase of organic products, indicating a spillover effect from private to public practices. Collectivistic values and, to a lesser extent, individualistic values affect personal and social norms on using organic produce, partly mediated by attitude to the environment. The authors add a new aspect to the discussion of spillover effects among different forms of pro-environmental behaviours and suggest that measures to promote sustainable behaviours in the public and private sector may reinforce each other.

Using Debit Card Payments Data for Nowcasting Dutch Household Consumption

In this paper we analyse whether the use of debit card payments data improves the accuracy of one-quarter ahead forecasts and nowcasts (current-quarter forecasts) of Dutch private household consumption. Since debit card payments data are timely available, they may be a valuable indicator of economic activity. We study a variety of models with payments data and find that a combination of models provides the most accurate nowcast. The best combined model reduces the root mean squared prediction error (RMSPE) by 18% relative to the macroeconomic policy model (DELFI) that is used by the Dutch central bank (DNB). Based on these results for the Netherlands, we conclude that debit card payments data are useful in modelling household consumption.

Aggregate Demand–Inflation Adjustment Model Applied to Southeast European Economies

Abstract Applying IS-MP-IA model and the Taylor rule to selected Southeast European economies (Albania, Bosnia and Herzegovina, Macedonia and Serbia) we find that the change of effective exchange rate positively affects output, while the change of the world interest rate negatively affects output or it does not affect the output at all, and additional world output would help to increase output of the selected economies. A lower ratio of government consumption spending to GDP would also increase the output of the selected economies. Hence, fiscal prudence is needed, and the conventional approach of real depreciation to stimulate exports and raise real output does not apply to the selected Southeast Europe economies. When private household consumption is employed in the model, the coefficient on government spending to nominal GDP is insignificant implying that Ricardian equivalence does hold for the selected countries.

Cropland Implications of Healthier Diets in the United States

We estimate the land-use impacts of healthier diets in the United States using a computable general equilibrium model developed by the Global Trade Analysis Project. We apply demand shocks based on dietary guidelines on the private household consumption of fruits, vegetables, and animal-based products to estimate how dietary changes impact the production levels and input use of crop sectors. We find that fruit and vegetable acreage would increase by 5.4 million acres in the United States. We also find that US cereal grain acreage would decrease under both animal protein consumption scenarios and decrease under one of the 2 dairy product consumption scenarios we consider.

Profiling Green Consumer Characteristics: An Eternal Quandary

It is an irrefutable fact that consumers play an undeniable role in any country's sustainability index advancement. There is evidence that thirty to forty percent of environmental degradation is caused by private household consumption activities. Consumers are becoming increasingly aware of this fact and have started exhibiting concerns towards environmental degradation. These pressures have made business organizations realize that resisting the move towards sustainability is no more viable. Marketers need to be aware of this behavioral change so as to incorporate changes into their marketing strategies befitting the demand of consumers. This led to researchers attempting to profile the characteristics of a green consumer, to facilitate marketers in drawing up appropriate green marketing strategies. This theoretical paper reviews the past attempts made to profile the green consumer characteristics and tries to highlight the complexities involved in the process. 

Keynesian Macroeconomics without the LM Curve: IS-MP-IA Model and Taylor Rule Applied to Some CESEE Economies

Applying IS-MP-IA model and the Taylor rule, this study finds that for selected CESEE economies (Albania, Bosnia and Herzegovina, Macedonia and Serbia), lower expected inflation rate, real exchange rate appreciation, a lower world interest rate which is calculated like a federal funds rate minus inflation in US, and more world output would help to increase output of the selected economies in the sample. A lower ratio of government consumption spending to GDP would also increase the output of the selected economies. Hence, fiscal prudence is needed, and the conventional approach of real depreciation to stimulate exports and raise real output does not apply to the selected CESEE economies. When private household consumption is in the model the coefficient on government spending to nominal GDP is insignificant implying that Ricardian equivalence does hold for the selected countries. These results are robust because they are controlled in the period of four decades from 1969 to 2013. Study uses 4 decadal dummies that control for each decade.

Cumulation of Cross-Section Surveys: Evaluation of Alternative Concepts for the Cumulated Continuous Household Budget Surveys (LWR) 1999 Until 2003 Compared to the Sample Survey of Income and Expenditures (EVS) 2003

With the development of household budget systems and with regard to the requirements of the European Union with new EU-SILC approaches, the cumulation of cross-section surveys to an integrated information system is recently discussed and required. In particular the reconstruction of household budget surveys should deliver yearly results as well multi-annual sufficient large samples to allow in depth analyses. This study contributes by a general conceptual foundation of the cumulation of cross-sections and an application which in particular evaluates the new cumulation concept with actual large official samples: the cross sectional cumulation of five yearly Continuous Household Budget Surveys (Laufende Wirtschaftsrechnungen, LWR) which will be compared to the large quinquennial Sample Survey of Income and Expenditures (Einkommens- und Verbrauchsstichprobe, EVS) of the German Federal Statistical Office. Therewith the sensitivity of the cumulation concept with its alternatives is evaluated for private household consumption expenditures of selected expenditure groups. A recommendation concludes.

Stability of the Demand for Real Narrow Money in Indonesia: Evidence from the Pre and Post Asian Crisis Era

The stability of the demand for real M1 in Indonesia is empirically examined using quarterly data between 1981 and 2002. A cointegrated VAR methodology that isolates the period of structural breaks in the data generating process of the variables, caused by the Asian crisis, is used. The results show that the nominal M1 demand function is long run homogenous in the price level and the price level itself is endogenous in the equation for nominal M1. Therefore, a reparameterization towards the real M1 demand function is necessary. In the pre and post Asian crisis era, the demand function for real M1 in Indonesia is empirically stable and consists of a small number of variables. In the long run, the real private household consumption spending forms the permanent part of the demand for real M1 balances. Meanwhile, in the short run, the opportunity cost of holding real M1 balances, measured by the 1-month nominal interest rate of time deposits in commercial banks, and agents' seasonal preference for real money balances, are key determinants of the demand for real M1 balances. In addition, there is evidence of a co-breaking relationship between the real M1 balances and the real private household consumption spending in Indonesia during the Asian crisis.

Czech economy at the beginning of 2002: uncertain prospects

Domestic demand, especially private household consumption and fixed capital investment was the main engine of continuing economic growth. At the same time, strong domestic demand did not provoke regular inflationary pressures. Inflation has stopped to be a threat of macroeconomic stability since the last quarter of 2001. Therefore, the Czech monetary policy could follow the overall world trend in basic rate cuts, the appreciating Czech currency being, however, very reluctant to monetary policy steps. The slowdown in Western Europe was felt predominantly in the Czech industry, which was very sensitive especially to the decline of demand for Czech industrial exports to Germany. The scope of external imbalance was approximately the same as in previous year - low level of import prices helped to offset the negative impact of weakening foreign demand. The current account deficit was comfortably offset by ongoing inflow of FDI.

Czech economy on a way back to growth

The paper contains an analysis of the current trends in the Czech economy, and a short-term outlook for 2000. The authors claim that the economy is going through a gradual turn from recession to stagnation and to a slight recovery. The main factors of the turn toward revival are exports, followed by private household consumption, while government consumption contributed only slightly to the increase of domestic demand. The authors see the main potential risk for the year 2000 in the need to stabilise economic growth and achieve its further acceleration. The success will mainly depend on a fast removal of financial barriers which the majority of Czech firms is now facing. Further inflow of foreign capital, growing competition pressures in the financial sector, the growth of exports, and a gradual increase of domestic demand are likely to help to overcome these barriers.