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Abstract

Details

The Economics of Time Use
Type: Book
ISBN: 978-1-84950-838-4

Article
Publication date: 1 December 2022

Zun Yuan Wong, Suhal Kusairi and Zairihan Abdul Halim

The persistent increase in household indebtedness is an alarming issue that is becoming a major concern for economists and governments in developing nations. Although household

Abstract

Purpose

The persistent increase in household indebtedness is an alarming issue that is becoming a major concern for economists and governments in developing nations. Although household consumption is an essential source of economic growth, households’ failure to meet their financial obligations will be one of the causes of economic problems if the increase in consumption is largely financed by household borrowing. Therefore, this study aims to analyse the nexus between households’ indebtedness and consumption and the roles of household characteristics.

Design/methodology/approach

This study uses a microdata set of the Household Expenditure and Income Survey in 2019, which contained a simple random sampling of 4,730 households.

Findings

Using a simultaneous equations model, our results show a negative nexus between householdsconsumption and their indebtedness. We find that household savings and size have an indirect impact on the debt service ratio, while the assets and total debt repayment instalments indirectly influence household consumption. We also identify differences in the relationship between the gender of the household head, rural and urban locations and income groups in consumption and indebtedness.

Research limitations/implications

The implication of this study is that governments should adopt several programmes to increase the awareness of household financial and debt management, especially for those in the low-income group.

Originality/value

This study contributes to the empirical literature by establishing a microeconomic perspective of consumption and an indebtedness model focusing on the differences in household characteristics in explaining consumption and indebtedness.

Details

International Journal of Development Issues, vol. 22 no. 1
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 14 October 2019

Asankha Pallegedara

Food consumption patterns have changed in many Asian countries over the past two–three decades. It is important to understand the changes in food consumption patterns and its…

Abstract

Purpose

Food consumption patterns have changed in many Asian countries over the past two–three decades. It is important to understand the changes in food consumption patterns and its drivers in different country settings as each country has different food cultures, tastes and habits. Thus, the purpose of this paper is to examine the patterns and determinants of food consumption choice and demand in Sri Lanka.

Design/methodology/approach

Using Household Income and Expenditure Survey 1990/1991, 2002 and 2012/2013 data, this study explores the relationship between food consumption patterns and the observed changes reported in per capita income, urbanization, structural transformations and demographics. Specifically, present study estimates the probability of consuming main food items such as rice, bread, dhal, vegetables and fish using a multivariate probit model and also estimates income and price elasticities of household major food items by applying Quadratic Almost Ideal Demand System.

Findings

This study demonstrates that per capita income, food prices, education level of the household heads, rural–urban affiliation and ethnic background significantly affect the consumption decision of the major food items. Sri Lankan households in general seem to consider that rice and dhal are necessary commodities, whereas bread and fish are luxury commodities.

Research limitations/implications

The lack of panel data and several missing districts in two survey rounds for analysis are limitations of the study.

Originality/value

To the author’s knowledge, this is the first study for Sri Lanka that examines food consumption choice and demand using nationwide data for the last two decades. This study applies novel econometric techniques to account for various issues in data analysis.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 26 August 2014

Jingjing Wang, Yongfu Chen, Zhihao Zheng and Wei Si

The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to…

Abstract

Purpose

The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to income elasticity and price elasticity of demand.

Design/methodology/approach

The double-hurdle model is fit to the household data of Sichuan and Xinjiang provinces which is from the National Bureau of Statistics urban household surveys.

Findings

The paper finds that consumers’ purchasing decisions regarding pork are related to both non-economic and economic factors. The results also indicate large differences among the determinants for decision of how much pork to buy across the three income strata. Low-income households have higher income elasticity than middle-income and high-income households. High-income and middle-income households’ level of pork consumption is more sensitive to pork price. High-income households have greater cross-price elasticity.

Originality/value

In the previous studies, the non-economic determinants of pork consumption have not been addressed, and neither does the issue of difference pork purchasing behavior across income strata for urban households in western China. So this study uses the double-hurdle model to investigate the determinants of pork consumption in urban western China.

Details

China Agricultural Economic Review, vol. 6 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 27 April 2020

Xiaojun Yuan, Yinjie Shen and Haigang Zhou

This paper aims to identify how house price affects household consumption.

Abstract

Purpose

This paper aims to identify how house price affects household consumption.

Design/methodology/approach

The authors use a micro-level data set that tracks the house price and consumption of a vast number of households over a period of four years. OLS regression is the main econometric method.

Findings

The authors document robust evidence that an increase in house prices stimulates household consumption, regardless of whether a household owns or rents. Moreover, the authors find that both acquiring and losing homeownership negatively affects household consumption. Further investigation suggests significant regional heterogeneity in the relationship between house prices and household consumption.

Originality/value

This is one of the first studies examining the relationship between house price and household consumption in China using micro-level data. Given the uniqueness of the Chinese housing market and China’s fast-growing consumption rate, the study contributes new evidence to the long-lasting debate.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 3 September 2018

Tolu Olarewaju

The purpose of this paper is to contribute to the occupational status and entrepreneurship research in developing countries by proposing that there are implications for household

Abstract

Purpose

The purpose of this paper is to contribute to the occupational status and entrepreneurship research in developing countries by proposing that there are implications for household consumption depending on the occupational status proportion of households. When the occupational proportion of the household changes, household consumption is affected. This effect also changes depending on what quantile level the household is in terms of household consumption.

Design/methodology/approach

The paper makes use of OLS and quantile regressions to examine 6,919 households comprising 40,294 individuals from the 2009 Nigerian Living standards measurement survey.

Findings

The paper finds that there are implications for household consumption based on the proportion of individuals in each occupational category. The contributions of each employment proportion changes at different quantiles with self-employed individuals increasing household consumption at the lower quantiles but reducing household consumption at the upper quantiles. Crucially, having a higher proportion of unemployed individuals in the household is oftentimes better than having a higher proportion of own account self-employed individuals.

Research limitations/implications

This paper offers new insights into how occupation proportion influences household consumption in developing countries. As a result, the household could seek to organise its members in such a way as to maximise combined household consumption, as diverse occupational statuses contribute differently to the household consumption at different quantile levels. The nature of the data used in this study however does not allow for causality tests.

Practical implications

The proportion of employment statuses in the household has implications for household consumption and so the mix of employment in the household is important. The self-employed could also be involved in activities to enhance household consumption that are not captured by labour income. However, self-employment does not seem to always have a positive effect on household consumption and sometimes unemployment might be better.

Originality/value

The paper provides a new way to view the household as an organising entity in terms of how it can allocate employment proportions to maximise household consumption.

Details

International Journal of Organizational Analysis, vol. 26 no. 4
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 6 August 2020

Wenbo Zhu, Yongfu Chen, Zhihao Zheng, Jing Zhao, Guojing Li and Wei Si

China has experienced a fast economic growth and shown a significant rise in income inequality in the past decades. During the same period, fluid milk consumption in urban areas…

Abstract

Purpose

China has experienced a fast economic growth and shown a significant rise in income inequality in the past decades. During the same period, fluid milk consumption in urban areas has rapidly expanded. The objective of this paper is to analyze and simulate the influence of income distribution changes on fluid milk consumption of households in urban China.

Design/methodology/approach

This study applies an inverse hyperbolic sine (IHS) double-hurdle model to modeling at-home fluid milk consumption of households across different income strata based on a sample of 11,861 urban households in five provinces in China, and simulating the impact of changing income distribution, including five income growth patterns, on fluid milk consumption of total households as well as specific household groups.

Findings

The fluid milk consumption in urban China will continue to increase, with the unconditional income elasticity being 0.334 for the full sample and 0.347, 0.335 and 0.162 for the low-, middle-, and high-income groups, respectively. The simulation results show an evidence that, compared with distribution-neutral and disparity-enlarging income growth patterns, a rising income equality would lead to a more significant increase in fluid milk consumption. And the inequality-reducing income growth pattern has a larger impact on fluid milk consumption of households with seniors and no children, as well as households having no local urban household registration (hukou).

Practical implications

The government should strengthen the supply measures of fluid milk in urban areas, enlarge domestic dairy production, and diversify the sources of milk imports. It is also necessary to subsidize low-income families, especially households with seniors or households migrated from other areas without getting local urban hukou, which could simultaneously improve nutritional benefits and alleviate financial pressures.

Originality/value

A simulation considering the evolution of income distribution as well as different household groups is conducted. Widely distributed data with a large sample size and detailed demographic information are used. The problems of zero consumption and non-normal distribution are addressed by the IHS double-hurdle model.

Details

China Agricultural Economic Review, vol. 12 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 April 2015

Lin Zhou, Shaosheng Jin, Bin Zhang, Guangyan zhoulin620@gmail.com Cheng, Qiyan Zeng and Dongyang Wang

The purpose of this paper is to separate households into several types based on their features, and then to further investigate determinants of household fish consumption in China…

Abstract

Purpose

The purpose of this paper is to separate households into several types based on their features, and then to further investigate determinants of household fish consumption in China by figuring out consumption preference divergences between types of households under the effects of economic and socio-demographics factors.

Design/methodology/approach

This paper first applies Multiple Correspondence Analysis to separate the modalities of variables and households according to their features, with health knowledge and time constraint of a spouse highlighted. Then, the transcribed principal information of both variables and households has been added into Marshallian demand function with fish price, income, child effect, and health status for identification of factors on household fish demand. The robust fixed effect and robust random effect GLS regression has been conducted.

Findings

The paper provides empirical insights about what and how factors affect household fish consumption. It suggests that, for all households, pork is still a main substitution of fish, fish consumption regarding to each household should be constant, and fish consumption differs a lot between provinces. For households with higher dietary knowledge, the authors found that increase of income, the existence of adolescent would cause an increase in fish consumption, while illness of household member makes a decrease in fish consumption. For households with working women who have higher opportunity cost of time pursue much more convenience, then consume less fish at home than their counterparts.

Research limitations/implications

The increasing variety in consumer’s dietary need makes the understanding of which becoming much more difficult than before. This paper uses three-wave panel data with households spread over nine provinces in China, but the results still has its limitation since china is the one with vast in territory and residents. In the future, the difference between urban and rural area in fish consumption need further research.

Practical implications

The paper reveals the common determinants of fish consumption in China, and makes a further clear answer by a further discussion on different household types. The results have rather high implications for making targeted policy or precisely forecasting a future fish demand in China, which will rather be helpful for fishery industry development in China.

Originality/value

This paper fulfills an identified need to study the divergence of determinants or the impact degree of different factors on fish consumption in China by household types. An increasing trend of food away from home has significant effect on how to count household size in food consumption studies, and the identification of persday in this study shows its advantages in dealing with this issue, which makes a contribution on resolve the overestimation of household size issue.

Details

British Food Journal, vol. 117 no. 4
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 September 2020

Dimitar Eftimoski and Dushko Josheski

The impact of remittances on household consumption stability and economic growth is not quite clear. This paper attempts to reopen the debate on the relationship among these three…

Abstract

Purpose

The impact of remittances on household consumption stability and economic growth is not quite clear. This paper attempts to reopen the debate on the relationship among these three variables. The current remittance literature suggests that a decrease in household consumption volatility, induced by remittances, automatically leads to economic growth. This paper challenges these arguments by stating that, under certain circumstances, there is no automatic relationship among remittances, household consumption stability and growth.

Design/methodology/approach

The authors approach the question from the perspective of emerging Central, Eastern and Southeastern European (CESEE) countries. The authors use the two-step system generalized method of moments (GMM) estimator with the Windmeijer (2005) finite-sample correction. To test the existence of the possible non-linear effects of remittances on household consumption stability and economic growth, the authors use threshold regressions.

Findings

The authors find that remittances significantly reduce household consumption volatility. They exhibit a consumption-smoothing effect on recipient households. This stabilizing effect happens not through the preventive role of remittances, but rather through their compensatory role. Remittances produce a weaker stabilizing effect on household consumption when the remittance to GDP ratio of the recipient country is above the estimated threshold level of 4.5%. The authors also find that there is a negatively significant and linear impact of remittances on growth. There is no evidence to suggest that remittances can foster productive investment and therefore promote economic growth in CESEE countries, which means that: (1) the remittances cannot be treated as a source of funds to invest in human and physical capital and (2) the remittances are compensatory rather than profit-oriented.

Originality/value

As far as the authors are aware, this is the first study that investigates the impact of remittances on both household consumption stability and economic growth simultaneously.

Details

International Journal of Emerging Markets, vol. 16 no. 8
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 17 April 2020

Haruna Issahaku, Ishaque Mahama and Reginald Addy–Morton

The purpose of this study is to assess the impact of credit constraints on agricultural labour productivity as well as the impact of credit constraints and agricultural labour…

Abstract

Purpose

The purpose of this study is to assess the impact of credit constraints on agricultural labour productivity as well as the impact of credit constraints and agricultural labour productivity on rural households' consumption in Ghana.

Design/methodology/approach

This study uses the Ghana Living Standard Survey round six (GLSS 6) as the main source of data, which happens to be one of the most comprehensive household datasets in Ghana. Quantitative estimation techniques (namely: Endogenous Switching Regression and Two Stage Least Squares) are used to address possible endogeneity and selection into credit markets.

Findings

First, large households are prone to credit constraints while age (experience) and compliance with extension advice reduce credit constraints. Second, the determinants of agricultural labour productivity for both constrained and unconstrained households are age, sex, farm equipment, herbicide and farm size. Third, household size, education and livestock rearing influence agricultural labour productivity of constrained households. Fourth, credit constraints, irrespective of how they are measured, impede agricultural labour productivity while access to credit fosters labour productivity. Lastly, credit constraints robustly reduce consumption while agricultural labour productivity strongly enhances rural households' consumption.

Originality/value

The first contribution is that, unlike most previous studies, we do not focus on the widely used measure of productivity – output per unit land, but on agriculture labour productivity in particular. Secondly, unlike most previous studies which examine the effect of credit constraints either on productivity alone or consumption alone, our study examines the impact of credit constraints on both. Thirdly, unlike the existing literature which uses one or two measures of credit constraints, we use a wide range of measures of credit constraints – seven different measures of credit constraints. Lastly, our empirical strategy solves at least two critical econometric problems – sample selection bias and endogeneity.

Details

African Journal of Economic and Management Studies, vol. 11 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

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