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    The impact of remittances on household tobacco and alcohol expenditures
    (2013-04) Del Mundo, Timyas L.; Mercado, Ronald Joseph Jr. G.
    Throughout the years, OFW remittances continue to be an integral factor of the Philippine economy. More and more Filipinos seek to live and work abroad to help their respective families who remain in the country. On the other hand, high numbers of smokers and drinkers in the Philippines' adult population remain significant. This results in the alarming percentages of smoking illnesses an alcohol use disorders of Filipinos. Now, with the recent passing of the Sin Tax bill, people are starting to recognize the importance of alcohol and tobacco and the significance of studies on these commodities. This study aims to see the impact of remittances on tobacco and alcohol use in Philippine households. By using Family Income and Expenditure Survey 2009 data, the authors regressed budget shares on the presence of remittances using OLS and Quantile Regression. Both estimation methods have shown that remittance-receiving households spend a smaller share on tobacco and alcohol than non-remittance receiving households. Policy recommendations target families with characteristics such as households with more adults, more employed members, heads of family that are male and young and, among those receiving remittances, households with high total expenditure because they tend to spend more on alcohol and tobacco.