Structure Of Household Expenditure Research Articles

Changes in the structure of household expenditure in urban and rural China

ABSTRACT In the last two decades, China has witnessed a remarkable change in household expenditure structure following the rapid growth of household income. Using provincial-level panel data from 2001 to 2019 and the Quadratic Almost Ideal Demand System model, we derive the expenditure elasticities, as well as uncompensated and compensated price elasticities, for urban and rural households. Our results suggest that food and clothing are ‘necessity’ goods, whereas residence, education, and transportation are ‘luxury’ goods for both urban and rural households. Household facilities and medical services are necessities for urban households, while they are luxuries for rural households. All own-price elasticity estimates are negative, indicating that no Giffen goods exist. We also observe temporal changes in the household expenditure structure over China’s Five-Year Plan cycles. Finally, we find significant differences in the own-price elasticity across the eastern, central, and western regions with varying levels of economic development.

Economic Behavior of Coastal Communities and Strategy in Fulfilling the Needs of Fisherman’s Household

The decreasing quality of fishery resources results in resource scarcity, abrasion and flooding. Communities, especially those living near the coast, are often accused of being the cause of the damage and scarcity of these resources. Various government policies and programs are oriented towards efforts to preserve fisheries resources and improve the economy and standard of living of communities around the coast. Research objectives: 1) To describe the activities of fishermen households in earning a living, 2) To describe the economic behavior of fishermen households, namely the income structure and the structure of household expenditure, 3) To analyze the share of food consumption expenditure of fishermen households, 4)To analyze the influence of household income level factors, education of housewives, and number of household members on household food expenditure, 5) To identify social and economic strategies of fishermen households in meeting the economic needs of their households. This research was conducted in Ujung Tanah District, Makassar City, South Sulawesi Province, for eight months. Survey research method by conducting in-depth interviews with fisherman households. Data analysis used descriptive analysis, income and expenditure analysis, and multiple linear regression analysis. The results showed that fishing activities in the sea, fishermen consider the available resources (type of boat and equipment) with preparation before going to sea, such as the duration of time at sea, tamping capacity, distribution of results and the radius of the fishing location. The income structure of fisherman households in Cambayya Village, Ujung Tanah District, Makassar City is sourced from income as a fisherman of IDR 2,602,857 per month with a percentage of 75.38%, and the income earned from side jobs other than fishermen is IDR 850,000 per month with a percentage of 24.61%. The expenditure structure of fisherman households in Cambayya Village, Ujung Tanah District, Makassar City is allocated for food consumption spending on average IDR 974,257 with a percentage of 43.79% and non-food consumption expenditure of IDR 1,250,357 with a percentage of 56.21%. The share of food consumption expenditure for fisherman households in Cambayya Village, Ujung Tanah District, Makassar City is 43.79% and is included in the food secure category. 85.71% of the respondents carried out a social strategy to meet their household needs when not going to sea is to find a side job. On the other side, the economic strategy carried out by fishermen is to involve the family (wife, children, and other family members) in earning a living.

A DISCOURSE ON HOUSEHOLD EXPENDITURE IN RURAL AREAS IN THE CONTEXT OF EUROPEAN ECONOMIC STUDIES

The article examines the dynamics and structure of household expenditure in rural areas of Ukraine from 2014 to 2021, utilizing a research toolkit developed by the authors. The study identifies peculiarities in expenditure formation, both in total and by category, taking into consideration inflation response, and determines preconditions for expenditure growth. By estimating the impact of individual expenditures on total household expenditure, the authors conclude that food expenditure is the most important factor in the overall spending of the rural population. A comparative analysis was conducted to examine household expenditure in rural areas of Ukraine and selected EU countries, focusing on the expenditures on food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; healthcare; education; as well as purchasing power standards for different years between 2005 and 2020. The findings reveal noticeable disparities in expenditure levels between Ukraine and EU countries, with significantly lower levels observed in Ukraine. Given Ukraine’s orientation towards European vector of development and drawing from foreign experience and potential national capacities, the study proposes recommendations for a substantial increase in the level of household spending in Ukraine.

The Impact of the COVID-19 Pandemic on Household Expenditures in the EU Countries (The Case of Central and Eastern Europe)

The COVID-19 pandemic has been one of the critical significant impact factors at the micro and microeconomic levels and has affected financial resources at both the state and household levels. The article aims to study the pandemic’s impact on the dynamics and structure of household expenditures in Central and Eastern Europe. The research is based on statistical data analysis and trend analysis. Household performance indicators were studied in the period 2017-2021, with a focus on the period 2019-2021, when there was an increase in the incidence of COVID-19. The obtained results allow us to state that households in the countries of Central and Eastern Europe received less income due to the COVID-19 pandemic effect, significantly reduced their expenditures, and preferred savings over investment. Households reoriented their expenditures by reducing spending on recreation and culture, restaurants and hotels, clothing and footwear, transport, electricity, water, gas, housing, food, and non-alcoholic beverages. The share of education costs remained unchanged. In the near term, excluding additional risk factors and uncertainty in current prices, the costs of households in Central and Eastern European countries will decrease. Still, their specific weight in the structure of GDP will decline.

Creative views on solving the problems of social policy in Russia and Belarus in rural areas

The article raises the issues of the ultimate effectiveness of regulatory measures of a social nature carried out by the state in rural areas of Russia and Belarus. For this purpose, the results of individual government directives are compared with the dynamics of demographic indicators, employment, real incomes, housing provision in rural areas, the structure of household expenditures. The problem areas of social policy in rural areas of Russia and Belarus are considered. As creative views on the solution of social problems in rural areas, options for the introduction and development of innovative agro-industrial ecosystems, which are defined by the authors as a set of economic, social, energy, information, marketing, financial and other entrepreneurial business structures that cover all the problem areas of development, are proposed.

Analisis struktur pengeluaran rumah tangga di Provinsi Jambi Tahun 2020

The purpose of this study was to determine the effect of household groups on the structure of household expenditures. The data used in this study is the March 2020 Susenas raw data, namely Susenas data on household scores in 11 districts and cities of Jambi Province. The data analysis method used is descriptive method. The analytical tool used is Multiple Linear Regression (multiple regression). The results showed that in the upper urban household group, the independent variables were: household income, number of household members, age of the head of the household, education level of the head of the household, gender of the head of the household, the status of the head of the household in the main occupation, and the status of the household head. marriage of the head of the household can explain household non-food competition by 94.3 percent and together the independent variables can have an influence on household non-food expenditure. In the lower urban household group, the independent variables cannot explain expenditures other than household food because they only have an R2 value of 2.7 and together the independent variables also cannot have an effect on expenditures other than household food. As well as in the upper rural household group, the independent variable can explain household non-food competition by 65.5 percent and the independent variable can have an influence on household non-food expenditure.

Monitoring of The Consumption Level for Sustainable Development Goals

The indicators of the Sustainable Development Goals (hereinafter referred to as the SDGs) were developed by the UN members and are aimed at the sustainable development of countries in the field of social policy, ecology and ensuring the well-being of the population. Sustainable Development Goals in the field of social policy can be considered necessary for survival. Country indicators are calculated by statistical agencies in accordance with methodologies developed by the SDGs curator agencies. The Federal State Statistics Service (Rosstat) in accordance with the Federal Statistical Plan calculates most indicators for Russia. The standard of living of the population can be estimated indirectly as the share of the population’s expenditures on food, which are necessary for the physiological survival of a person. The literature notes that the existing criteria for the level of poverty can distort the real state. Therefore, the average per capita consumption level may depend on the size of the household. The paper considers the average per capita expenditure level on food in a household, depending on the characteristics of the household (number of members in the family, age groups). The paper also considers the differentiation of the regions of the Russian Federation in terms of the share of the population’s expenditures on food.The purpose of the study is to determine the relationship between the size of the household and its food expenditures, as well as the characteristics of the population’s expenditures, depending on the composition of the household, on food at home, outside the home and alcohol expenditures.Materials and methods. The source of the data for statistical analysis is the Household Budget Surveys (HBS) conducted by Rosstat for 2010-2020 (11 years). Methods of statistical analysis are applied in the work; the author’s grouping of households is given depending on their characteristics. This survey is conducted quarterly for 48 thousand households. The performed calculations are presented for the year as an average value for 4 quarters. All necessary calculations were performed using the IBM SPSS application software package.Results. The results obtained allow us to draw conclusions about the impact of household size on food consumption. The consumption schedule has a U-shape, where the lowest average per capita consumption is observed in households of three and four people. At the same time, in especially large households (6 or more people), a high share of food expenditures may indicate a high level of poverty. The indicator of the share and structure of household expenditures on food also depends on the characteristics of the household: the largest share of total food expenditures in final consumption expenditures in 2020 is observed in households from single pensioners (46.4%), and the smallest - in households from 2 adults and one child (31.8%). The largest share of spending on eating out is in households of adults and children. At the same time, the presence of a pensioner in the household reduces the share of household expenses for eating out. This dependence can be explained by the lack of time for cooking in the adult (working-age) population.Conclusion. The paper presents the author’s system of grouping households according to their characteristics (number of members in the family, age affiliation, etc.). The results obtained make it possible to assess the differentiation in the structure of household expenditures on food, depending on the characteristics of the family.

Development of the global pharmaceutical market under the conditions of the COVID-19 pandemic

The paper examines the peculiarities of development of the global pharmaceutical market under the conditions of the COVID-19 pandemic. It has been proved that pharmaceutics is currently one of the most dynamic and science-intensive sectors of economy in Ukraine and across the world with its development stipulated by a growing demand for pharmaceutical products and the increase in government expenditures for healthcare. The purpose of the presented work is the analysis of development of the global pharmaceutical market under the conditions of the COVID-19 pandemic. It is established that the growth of the global pharmaceutical market is preconditioned primarily by the following trends: growth in the segment of biologically active additives (BAA) and the generic drug segment; epidemiological and economic changes; growth in demand for medication which is effective in the treatment of diseases previously typical only for the developed countries. An analysis has been conducted with regard to the dynamics of health-care costs over the period of 1995–2020 among three groups of countries: with high / medium / low per capita income. According to the results of the statistic analysis of the foreign trade balance of Ukraine in the period of 2016–2020 it was asserted that within the structure of foreign trade operations the importation of pharmaceutical products significantly exceeds its exportation. Contrary to the global market with its upward trend of growing consumption of medicines, Ukraine manifests fairly modest consumption, mainly stipulated by low purchasing power of the population. A ranking of the leading companies in the Ukrainian market of pharmaceutical products has been established with regard to three indicators: the growth of sales, the Evolution Index, the market share. The paper scrutinizes possible risks in the global pharmaceutical market in consequence of the COVID-19 pandemic: disruption of the global supply chain; deficit of medications for intensive care units and emergent of bottlenecks in their production distribution; decline in demand for prescription medicines. Among the local short-term risks for the pharmaceutical market of Ukraine are as follows: a relatively slow recovery of basic macroeconomic indicators; structure of household expenditures; increased fiscal pressure on manufacturers; unstable political and economic situation within the country.

Analysis of trends in services sector development in the economy of Ukraine

The subject of research is the theoretical, methodological, and practical aspects of services sector development in the national economy. The purpose of the article is to identify the features and contradictions of services sector development in the economy of Ukraine. The methodological basis of the study is general scientific and special methods of scientific knowledge, conceptual terms of modern economics, and scientific works of domestic and foreign scientists on the functioning and development of the services sector. The methods of induction and deduction, unity of historical and logical, comparative analysis are used in the work - at revealing the basic tendencies and contradictions of services sector development, substantiation of the essence of service, its specific signs, and classification characteristics. Results of work. The tendencies of services sector development in the economy of Ukraine are determined. The intensive development of the Ukrainian services sector started only with the beginning of the market relations formation. In the economy of Ukraine, there is a strong tendency to exceed the total contribution of the services sector to national GDP against the contribution of industrial production and agriculture. Besides, the dynamics of the employment structure of Ukraine by economic activity types shows that the share of the economically active population working in the services sector is much higher than in primary and secondary sectors with a steady upward trend. The volume of capital investment in the services sector exceeds these indicators for both spheres of material production. There is a constant growth of intermediate consumption of services as necessary production resources. The main areas for attracting investment resources are capital-intensive industries, at the same time the level of investment activity in the areas of knowledge-intensive services is threateningly low. The expenditures on services consumption in the general structure of household expenditures are insignificant. The Ukrainian economic system is export-oriented in the sphere of services and has a positive foreign trade balance in services. Field of application of results. The conclusions and results obtained in the article should be used in the educational and scientific process of economic faculties of universities, in the activities of service enterprises as well. Conclusions. The industrial specialization of the national service sector, its focus on low- and medium-tech capital-intensive industries, low share of household expenditures in the service sector, the tendency to neglect the intellectual development of the individual, and insufficient attention to innovative economic development make it possible to determine the current state of and trends of services sector development as a quasi-post-industrial, where the absolute numerical indicators have already been achieved, and qualitative indicators of development are remaining at the industrial level.

Revisiting the optimal structure of household financial resources, taking into account the financial literacy of the population

Subject. This article verifies the original hypothesis that the level of financial literacy of the population has an impact on the structure of household expenditures. Objectives. The article aims to test if there is a correlation between the level of financial literacy of the population of the Sverdlovsk Oblast and the structure of household expenditures, based on a subjective assessment of the optimality of their own financial resources by respondents. Methods. For the study, we used a sociological survey the methodology of which is adapted from the methods of the Central Bank of Russia and OECD countries for the conditions of the Sverdlovsk Oblast, and the Nash equilibrium concept. Results. The article substantiates the hypothesis that the level of financial literacy of the population has an impact on the optimal structure of household expenditures. It also proposes original principles and criteria for the optimal structure of household financial resources based on the cost structure. Conclusions. The article concludes that more financially literate people are more likely to plan their income and expenses and are able to assess the structure of their expenditures from an optimal perspective.

“Depression from Overestimation”: Income, Perception Bias and Children’s Mental Health in China’s Rural Households

The mental health of rural children is closely related to their household characteristics, with household income level as one of the important influencing factors. In general, improvement in household income level is deemed to play an important role in promoting children’s mental health. However, the impact and mechanism of household income status perception bias on children’s mental health due to changes in the structure of household expenditure are under studied. On the basis of the perspective of household income status perception bias, we constructed a representative behavior household model of income status perception bias and a three-wave panel. We adopted the data from Chinese household tracking surveys in 2012, 2014, and 2016 to empirically analyze the mechanism and channel of household income status perception bias on children’s mental health. Results reveal that: (1) A significant negative correlation exists between household income level and income status perception bias, and poor households are likely to have income status perception bias. (2) A significant positive correlation exists between income status perception bias of poor households and their gift-giving expenditure, whereas a negative correlation exists between income status perception bias and expenditure for children’s education. The more the poor households overestimate their income status, the more inclined they are to increase their gift spending and reduce expenditure for children’s education, thereby changing the structure of family expenditure. (3) A significant negative correlation exists between poor household income status perception bias and the mental health status of their children, whereas a positive correlation exists between household expenditure for children’s education and children’s mental health status. That is, the more that poor households overestimate their relative income status, the greater the mental pressure on children. Finally, the reduction of expenditure on children’s education by rural households is an effective channel through which income status perception bias among poor households affects children’s mental pressure.

Structure of Household Expenditures in Slovakia and Relations Between its Categories

Abstract Household income is one of the basic indicators of the living standard of population in countries or regions. The income indicator is inextricably linked to the household expenditure indicator, whose structure also indicates the living standards of households. The development of income and expenditures of Slovak households has been affected by many events over the last decades (fulfilment of the Maastricht criteria, accession of the Slovak Republic to the EU, adoption of the euro currency, economic crisis). The category of gross cash expenditures, net cash expenditures or consumption expenditures may be used to assess household expenditures. Based on the classification by individual consumption by purpose (COICOP), the expenditures are divided into 12 basic categories. The development of individual categories of expenditures, however, should be analysed separately as there is no long-term balanced relationship between them.

HOUSEHOLD INCOMES AND EXPENDITURES: DOMESTIC REALITIES AND FOREIGN EXPERIENCE

Introduction. Household finances in Ukraine are unbalanced. Households are losing a significant part of their income due to inefficient allocation of available savings. This is the result of the drawbacks in the functioning of the Ukrainian stock market. Social transfers as a lion's share of domestic household income, are redistributed with a violation of targeting principles, and the detention rates of the population are formed. The size of state social guarantees and standards does not correspond to the average European values. Macroeconomic conditions for development of household finances, in particular the inflationary processes in economy are also unfavorable. The purposeof the article is to analyze foreign experience and domestic realities of formation and use of household finances, to carry out a comparative description of the obtained results. It is also aimed at developing a strategy for the comprehensive improvement of domestic household finances on the basis of the analyzed foreign experience. Methods. In the article research methods of analyzis, synthesis, grouping and generalization have been applied in analyzing of population income and expenditure, aggregate financial resources of households. Methods of induction, deduction and analogy have been used for forming a strategy of the comprehensive improvement of household finances. Results. The analysis indicated that the main sources of household incomes are income from employment, wages in particular and entrepreneurship. Moreover, the share of wage earnings is comparable to the foreign one, however, in the part of self-employment and entrepreneurial activity there is a discrepancy of 4-6% versus 10-18%. The share of social transfers in the income of domestic households varies from 20 to 27% and is quite comparable with foreign countries. Income from households in Ukraine is 0.8-1.0%, while in other countries it is 6-10%. The problem is that domestic households are not fully acquainted with the potential of the securities market. Domestic households, in comparison with foreign ones, receive significant financial assistance from relatives and other households, also from abroad. The prevailing part in the structure of household expenditure is directed towards consumption. The share of non-consumption expenditures of domestic households (8-10%) is lower than that of households in the EU (15-30%). Savings of domestic households (1.5-3%) are much less than savings of foreign households (10-15%) due to the crisis of the domestic banking system, distrust of the population to banking and non-bank financial and credit institutions. Conclusions. The strategy of comprehensive improvement of domestic household finances has been suggested. It consists of the general strategy and is applicable at the national level and at the level of individual households. The strategic tasks are stabilization and growth of economy; social responsibility of business; stock market development; increase of state social standards and guarantees.

Preferencje konsumentów na rynku żywności w Polsce w warunkach deflacji w latach 2014–2015

Celem artykułu jest zobrazowanie oraz ocena zmian poziomu i struktury wydatków gospodarstw domowych na żywność, a także spożycia żywności w gospodarstwach domowych w warunkach deflacji w latach 2014–2015. W wyniku przeprowadzonych analiz stwierdzono, że spożycie żywności uległo dużym ilościowym i jakościowym zmianom. Wzrosły realne wydatki gospodarstw domowych na żywność, po spadkach notowanych w latach 2009–2013. Jednocześnie nastąpiło zmniejszenie wolumenu spożycia żywności, co oznacza przesunięcie preferencji konsumentów w kierunku droższego wariantu wyżywienia. Zmalał popyt gospodarstw domowych na proste, nieprzetworzone produkty spożywcze, a wzrósł – na artykuły żywnościowe wysoko przetworzone, o wyższej jakości, wygodne w użyciu, oszczędzające czas na przygotowanie posiłków, wpływające na urozmaicenie i podniesienie wartości żywieniowej diety. Znacznie wzrosły wydatki gospodarstw domowych na usługi gastronomiczne. Skala tych zjawisk wskazuje na wyraźną zmianę preferencji nabywców żywności.

The Effect of Gender-Targeted Conditional Cash Transfers on Household Expenditures: Evidence from a Randomized Experiment

This paper studies the differential effect of targeting cash transfers to men or women on the structure of household expenditures on non-durables. We study a policy intervention in the Republic of Macedonia, offering cash transfers to poor households, conditional on having their children attending secondary school. The recipient of the transfer is randomized across municipalities to be either the household head or the mother. Using data collected to evaluate the conditional cash transfer program, we show that the gender of the recipient has an effect on the structure of expenditure shares. Targeting transfers to women increases the expenditure share on food by about 4 to 5%. To study the allocation of expenditures within the food basket, we estimate a demand system for food and we find that targeting payments to mothers induces, for different food categories, not only a significant intercept shift, but also a change in the slope of the Engel curve.

Regional population expenditure for foodstuffs in the Russian Federation: componential and cluster analyses

The article describes the solving of the problem of conducting the componential and cluster analyses of population expenditure for foodstuffs as one of the most important components of the standard of living. The purpose of the analysis is to develop the regional clusters of the Russian Federation, which vary in the structure of household expenditure for foodstuffs. The foodstuffs are presented in absolute units taking into integral account the standard of living index. The methods of intellectual analysis such as component and cluster analyses are applied as the research methods. The procedure for the data intellectual analysis based on the interconnected performance of component and cluster analyses is proposed. The procedure of the data intellectual analysis considers the interrelation between the results received by different methods, and also the possibility to return to the previous method for the purpose of repeating the analysis to specify consistently the clusters composition. Few clusters of the wealthy regions characterized by the high and average level of expenditure for foodstuffs are revealed as well as the quite many clusters of not enough wealthy and not wealthy regions characterized by the low level of expenditure for foodstuffs. It is shown that the growth of standard of living characterized by the size of a gross regional product per capita is followed by the growth of the Gini coefficient, which indicates both the inequality of income distribution and reduction in expenditure for low-value foodstuffs. The results of the analysis can be applied for the development of the decision making support system intended for the analysis of the scenarios of macroeconomic regulation in the field of income policy for the purpose of increasing the standard of living of the population. The analysis of the population expenditure for foodstuffs has allowed to reveal the cluster structure of the regions of the Russian Federation, to show it according to the generalized indications, to formulate the specific characteristics of the clusters of the regions and important management decisions.

Poverty of the Czech Elderly - Myth or Reality?

"Poverty among the Czech elderly is considered from two perspectives: objective and subjective. Various indicators of objective poverty are analysed, such as the relation of average monthly income to average old-age pension, pension inequalities, the structure of household expenditures, and the structure of consumer durables ownership, as are representative survey data measuring subjective poverty. It is concluded that from the objective point of view the Czech elderly are as a whole well above subsistence poverty. However, their subjective poverty seems quite far-reaching, affecting between 30 and 50 percent."

Dynamic Structure of Household Expenditures in the Federal Republic of Germany.

Dynamic Structure of Household Expenditures in the Federal Republic of Germany.