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1 – 10 of over 26000This paper examines the gender differences of expenditure distribution within the last decade in Spain. In particular, the Lorenz dominance is tested using expenditure…
Abstract
This paper examines the gender differences of expenditure distribution within the last decade in Spain. In particular, the Lorenz dominance is tested using expenditure distributions as approximated by the Dagum model. The sensitivity of the results to some conceptual choices, such as the equivalence scale or the gender reference, is also analysed.
Arvind Sahay and Anandan Pillai
The purpose of this paper is to understand the impact of components of marketing expenditures, i.e. advertising and distribution expenditures on intangible value of firm (measured…
Abstract
Purpose
The purpose of this paper is to understand the impact of components of marketing expenditures, i.e. advertising and distribution expenditures on intangible value of firm (measured in terms of Tobin's Q). The relationship is studied in the context of branding approaches (corporate and house of brands) that various firms follow.
Design/methodology/approach
The data are collected from databases of Centre for Monitoring Indian Economy (CMIE) and from the web site of National Stock Exchange. Time series regression is performed using SPSS software to test the model.
Findings
Advertising expenditure has a positive impact on the intangible value of the firm and this relationship is stronger for firms following corporate branding than for firms that follow house of brands strategy. Distribution expenditure has negative impact on the intangible value of the firm and this relationship is stronger for firms following corporate branding than for firms that follow house of brands strategy.
Research limitations/implications
Since most of the data retrieved for the analysis were of B2B (business to business) firms, the findings may not be generalized for all firms.
Practical implications
Advertising expenditure has a diminishing marginal utility in creating intangible value. It would be useful for firms to understand where they are on this continuum and whether their advertising expenditure is giving adequate returns or may be better spent elsewhere.
Originality/value
In the literature, researchers have expressed mixed viewpoints regarding the impact of total marketing spend on intangible value. The marketing expenditures are found to have both positive and negative impact on intangible value, with respect to various contexts. However, the impact of major components of marketing expenditures is not addressed. This gap is addressed in this research paper.
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The purpose of this paper is to use data from the 2007 Agricultural Resource Management Survey to assess the inequality in the distribution of farm family living expenditures. The…
Abstract
Purpose
The purpose of this paper is to use data from the 2007 Agricultural Resource Management Survey to assess the inequality in the distribution of farm family living expenditures. The impact on inequality of marginal increases in expenditure components with respect to aggregate expenditures is also addressed in the context of the life cycle and under various “equity” weights that reflect the extent to which society is averse to inequality.
Design/methodology/approach
Inequality in the distribution of households' equivalent‐scale total expenditures E and of their K components is measured using the concept of the extended Gini coefficient (GE).
Findings
Results show an unequal distribution of total expenditures, with “food including food away from home” and “clothing, personal care products, etc.” as the two expenditure items that are most suitable for either a subsidy or a tax‐hike. No discernable statistical difference is found when the elasticities of expenditures were estimated across two distinct age‐groups and across various levels of “equity” weights.
Research limitations/implications
Research is based on cross‐sectional data and does not allow for dynamic assessment of expenditure elasticities.
Originality/value
The paper describes the use of an innovative non‐parametric method to estimate expenditure elasticities among farm households.
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Thong Le Pham, Nghiem Tan Le, Nhi Nhat Phuong Ho and Thanh Cong Le
This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.
Abstract
Purpose
This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.
Design/methodology/approach
The present paper applies the “recentered influence functions (RIF)” in “Oaxaca-Blinder (OB)” type decomposition as proposed by Firpo et al. (2018) to allow for the flexible distribution of the outcome variables and the non-randomness of non-farm employment that violates the classical linearity assumption.
Findings
Non-farm households have significantly higher per capita consumption expenditure than farm households for the entire distribution. The gap in expenditure is large at low percentiles and narrowing with higher percentiles. At 10th percentile, the gap is estimated at 27.1%, but it is decreasing to 11.1% at 90th percentile. Most of the gaps are explained by the differences in the observed characteristics between farm and non-farm households such as ethnicity, education, income, internal transmittances and household composition. Non-farm households are endowed with more productive factors that result in higher per capita consumption expenditure.
Originality/value
Gaps in ethnicity and education are found to be key predictors of the inequality in consumption expenditures between farm and non-farm households, then, government policies that are aimed at increasing access to non-farm employment and education for ethnic minorities and for rural poor households are pathways to improve rural household welfare and hence reduce inequality.
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The purpose of this paper is to decompose inequality in Sri Lanka by population subgroups and income sources.
Abstract
Purpose
The purpose of this paper is to decompose inequality in Sri Lanka by population subgroups and income sources.
Design/methodology/approach
The study is based on the latest Sri Lankan Household Income and Expenditure Survey. The study firstly sketches an inequality profile for Sri Lanka and then investigates the principle components of inequality by applying several decomposition techniques. Essentially a decomposable class of inequality measures were computed by considering households characteristics such as geographic location/sector, gender, education and type of employment. Inequality within and between population subgroups/sectors in the distribution of expenditure was done by employing the Theil's entropy index, mean logarithmic deviation, and the half the squared coefficient of variation. Concentration curves and indices were utilized to decompose inequality by expenditure components.
Findings
The empirical findings are broadly encouraging. Decomposition analysis results reveal that in all groups used, the between‐group inequality accounts only for a very small part of the overall inequality. Thus, reducing inequality between the household groups would have only limited effect on reducing the overall inequality. Results confirm the fact that inequality in Sri Lanka was driven by relatively higher levels of expenditure inequalities of those at the top of the expenditure distribution. Decomposition estimates of the Gini index by expenditure sources via Rao's method revealed that the distribution of non‐food expenditure was more asymmetric as compared to food expenditure. Findings in general point to the wisdom of considering the redistribution of economic resources within‐sectors and sub‐groups rather than between‐sectors and sub‐groups if the intention is to cost effectively reduce overall inequalities in Sri Lanka. However, in practice an optimal‐mix of within and between‐group policies would be required in addressing overall inequality.
Originality/value
This is the first study that analyzes the latest Sri Lankan Household Income and Expenditure Survey to decompose inequality by population subgroups and income sources.
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Zelalem Yilma, Owen O’Donnell, Anagaw Mebratie, Getnet Alemu and Arjun S. Bedi
Little is known about perceptions of medical expenditure risks despite their presumed relevance to the demand for health insurance. This is the first study to examine households’…
Abstract
Little is known about perceptions of medical expenditure risks despite their presumed relevance to the demand for health insurance. This is the first study to examine households’ beliefs about their future spending on health care. The study made a unique elicitation of subjective probabilities of medical expenditures from rural Ethiopians participating in a panel survey and offered the opportunity to enrol in a health insurance programme. The vast majority of respondents give logically consistent responses to the subjective probability questions. The data indicate that the cross-sectional variance of realized expenditures, which is often used to proxy risk exposure, greatly overestimate the risk faced by any single household. Consistent with the serial correlation observed in realized expenditures, expectations are positively correlated with past expenses. They are revised upward in response to an increase in realized expenditure and, to some extent, they predict expenditure incurred in the year ahead. Despite containing information on future medical expenditures, there is no evidence that expectations influence the decision to take out health insurance, although plans to insure are positively related to the perceived volatility of expenses.
These results suggest that adverse selection may not threaten the viability of voluntary health insurance. A caveat is that measurement error in the reported probabilities may weaken the test for adverse selection. Notwithstanding this limitation, measurement of household-specific distributions of future medical expenses is feasible and avoids relying on the cross-sectional variance, which provides an upwardly biased estimate of medical expenditure risk.
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Yanjun Ren, Yanjie Zhang, Jens-Peter Loy and Thomas Glauben
Given the fact that the income disparity has become extremely severe in rural China, the purpose of this paper is to examine heterogeneity in food consumption among various income…
Abstract
Purpose
Given the fact that the income disparity has become extremely severe in rural China, the purpose of this paper is to examine heterogeneity in food consumption among various income classes and to investigate the impact of changes in income distribution patterns on food demand in rural China.
Design/methodology/approach
In this study, the authors partition the households into five income classes according to the distribution of household per capita net income. Using household data drawn from the China Health and Nutrition Survey in 2011, a two-stage demand model is applied to estimate a food demand system for each of the income classes. After obtaining the estimated income elasticities of eight studied food groups for each income class, the authors then examine the responsiveness of food demand to the changes in income distribution by means of four scenarios with varying income distribution.
Findings
The empirical results indicate that substantial differences in food consumption exist across various income classes. Specifically, the lowest-income households are more sensitive to price and income changes for most studied food groups than the highest-income households are. In general, income responsiveness is higher for meats, aquatic products and dairy products. Based on estimated income elasticities, the projected food consumption under different income distribution patterns shows that changes in income distribution have significant influences on food consumption. In addition, the authors conclude that a more equal distribution of income would be associated with a higher demand for food in rural China.
Originality/value
This paper employs a two-stage demand model to estimate food demand in rural China by income classes. The results imply substantial differences in food demand for various income classes. Therefore, income distribution should be taken into account instead of an average estimation for the population as a whole when investigating food demand in rural China. Given the significant changes in income distribution in rural China, this study provides several important policy implications to alleviate income inequality and poverty, as well as to improve nutrition for lower-income classes.
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Indra Indra, Suahasil Nazara, Djoni Hartono and Sudarno Sumarto
The purpose of this paper is to investigate the relationships between expenditure inequality and expenditure polarization in Indonesia during the post-reformation era in…
Abstract
Purpose
The purpose of this paper is to investigate the relationships between expenditure inequality and expenditure polarization in Indonesia during the post-reformation era in 2002–2012. It also explores the various dimensions of regional groups; and finds out in which dimension did the expenditure inequality and polarization occur in Indonesia during the period.
Design/methodology/approach
Gini index was employed to measure expenditure inequality and a number of developed polarization measurement was applied to investigate the linkage between inequality and polarization at national levels. It also applied a polarization index based on inequality decomposition to investigate how the polarization occurs in the regional dimension. It covered several groups of regional dimensions; those are rural and urban areas; eastern and western regions, as well as natural resource-rich provinces and non-natural resource-rich provinces.
Findings
This study found that expenditure inequality and polarization in Indonesia have moved in line, showing an increasing trend during the observation period. In the regional context, the greatest rise was in the region with low initial levels of expenditure inequality and polarization. The trends in each of the regional dimension showed a convergent pattern. It also showed that a significant portion of total polarization was attributed to expenditure differences between urban and rural areas rather than the other groups of regions.
Research limitations/implications
The similar upward movement of expenditure inequality and polarization indicates that not only the differences between groups of expenditure are getting larger, but also the identification of the within groups expenditure are getting stronger. Since the high degree of inequality and polarization are closely related to conflict among groups of communities, this finding is a strong message to the policymaker that the development process in Indonesia during 2002–2012 tended to encourage the creation of social instability.
Practical implications
This study provides an evaluation for further development of social economy in Indonesia.
Originality/value
This paper attempts to give an overview of the relationship between expenditure inequality and polarization in Indonesia during 2002–2012. It also tries to reveal in which regional dimension, expenditure inequality and polarization occurred in Indonesia during the mentioned period. The issues have not been examined in previous empirical studies in Indonesia.
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The problems involved in trying to measure the effect of the budgeton the distribution of lifetime income are reviewed. A comparison ismade of the likely differences between the…
Abstract
The problems involved in trying to measure the effect of the budget on the distribution of lifetime income are reviewed. A comparison is made of the likely differences between the stylised facts of annual incidence studies and the possible lifetime impact of the budget. Annual studies show that redistribution to the poor occurs, primarily as a result of pensions. It is likely that the lifetime incidence of the budget is broadly neutral since pensions will not accrue mainly to the lowest deciles when a lifetime income perspective is taken.
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