12 results
Search Results
Now showing 1 - 10 of 12
Item Restricted The saving behavior and consumption pattern of remittance-receiving households in the Philippines(2005-04) Burgos, Victor Fernando V.; De Vera, Coney Rose M.; Tan, EditaThe contribution of remittances from abroad to national income is becoming more significant, with its increasing share in gross national product and in exports. This study identifies the impact on household saving of remittances, along with other demographic factors (urbanity, dependency ratio, educational attainment of household head, region). This paper likewise investigates the consumption patterns of remittance-receiving households (RRHs) with respect to consumer goods, expenditure for human capital, and productive investment. Using Ordinary Least Square method (OLS), RRHs are seen to have a positive average propensity to save even if they tend to consume relatively more than save relative to non- RRHs. RRHs are also found to spend most on consumer goods, followed by expenditure for human capital and productive investment. Income elasticities for these consumption categories are similarly estimated. Human capital expenditure is shown to be the most responsive to changes in both non-remittance income and remittances. The life-cycle and permanent income hypothesis (LC-PIH) holds for saving; that is, the marginal propensity to save out of transitory income is higher than that out of permanent income. On the other hand, the LC-PIH holds for expenditure for productive investment; that is, marginal propensity to consume out of permanent income is higher than that out of transitory income. Urbanity and high educational attainment of the household head have positive effects on saving while dependency ratio has a negative effect. Saving and consumption behavior also differ across regions.Item Restricted Determinants of household spending on education in the Philippines(2008-10-23) Del Mundo, Ana Marice B.; Delos Reyes, Joy Maria B.; Solon, OrvilleEducation financing in the Philippines seems to have a downward movement: national budget share for education is shrinking because of the budgetary fiscal contraction, while the total family expenditure for education is decreasing due to soaring price levels of basic commodities. In response to these recent developments, this paper analyzes the factors affecting the household decision on how much to spend on education and to ascertain which regions are at the margin and are in need of government subsidies for education using FIES 2003 and supplemental macro-level data. Although the decline in public and private spending is the case in point, the enduring question is not so much of how much money there is to spend but how it should be spent. As is evident in the existing literature, the disparity in government spending on education has been dramatic across regions. From here, we find the binding need to address the problem of inequitable allocation of government funds for education in the Philippines. The estimation results are generally in accord with expectations. We found incremental increases in the total family expenditure escalating the levels of household education expenditure by 5.6%, which is indicative of how wealth characteristics of the household press influence on its spending on education. Moreover, the economic status of the household is found to matter when it concerns the poorest 30%. Contrary to previous studies, we found that the poor significantly spend more on education. We also found a dominant scale effect of the number of household dependents working on the household's spending on education. Education expenditures are found to be modest when the household draws income primarily from wages but significantly higher when the household is agricultural or when the spouse of the head of household is employed. Moreover, we find no isolated regional effects that are significant on the household's expenditure on education. Regional disparities are found to be dramatic when regional effects are combined with that of total family expenditure. In particular, households in Central Luzon, CARAGA and MIMAROPA spend unreasonably more than NCR does, where the largest share of education expenditure in the national funds for education is concentrated.Item Restricted Examining the contribution of household attributes and locality on household welfare inequality: a regression-based decomposition approach(2009-11) Ambrocio, Deah S.; Balajadia, Regina Bianca L.This study focuses on examining the sources of per capita expenditure inequality in the Philippines using the Family Income· and Expenditure Survey data for 2000 and 2006. To be able to see the share of inequality caused by differences in endowments between regions and within regions from the national-level measure, decomposition of the inequality index Theil T was undertaken. For a more in-depth analysis on the sources of inequality and to be able to see the relationship of locality and various household characteristics to household welfare measured by the log of per capita expenditure, regression runs were performed. Regression-based decomposition techniques were also done to see further how much of the total inequality is due to variations in geographical location and household characteristics. The inequality in the living standards faced by Filipinos appears to be caused by within-group components contrary to the widespread view that it is caused by differences in endowments between regions. Hence, the results imply that poverty reduction policies should create conditions that will lessen welfare disparities within regions. Household head characteristics specifically, educational attainment has emerged to be the highest contributor in the variance explained by the model. Likewise, the head's employment sector turned out to be a significant source of variation. Agriculture remained to be the poorest sector. Household composition factors also played an important source accounting to almost a quarter of explained variation. Location is found to account for a substantial share of variance but still not as high as the share appropriated by household attributes.Item Restricted Residential demand for electricity in the national capital region(2009-03) Magpantay, Sheena Grace M.; Chua, Ryan B.; Esguerra, EmmanuelThe short-run and long-run demand model for residential electricity in the National Capital Region is estimated using the data from the 2003 Family Income and Expenditure Survey for the short-run and data from Manila Electric Company for the long-run. Multiple regression analysis with robust standard errors was used where in several variables were tested with the demand for electricity as the dependent variable. Results for the short-run model showed that demand is expenditure inelastic for the households with all the kinds of appliances and elastic for households without appliances and those with entertainment appliances. The authors also found out that fuel consumption, age, household size, elementary and high school education have significant effects on residential electricity consumption. For the long-run model, the demand for electricity is found to be price inelastic. Results also show that number of customers has positive effects on the demand for electricity of households, while LPG prices have negative relationship with it.Item Restricted An assessment of the expanded value-added tax and its relationship with household(2009-12-09) Vida, John Michael Gabriel N.; Esguerra, MannyThis paper provides an analysis of the expanded Value-Added Tax system and how it has potentially affected the consumption expenditure of Filipino households across different income levels. Using the aggregated Family income and Expenditure Surveys for 2003 and 2006, the paper provides an analysis of how the VAT may have affected expenditure across two points in time, before and after the implementation of the expanded VAT. Also, the VAT is analyzed and compared to the total income of households in different income levels to determine the progressivity of the VAT. This paper finds that the VAT may be one of the many viable solutions in solving the fiscal problem of the Philippi11es. From the data, the VAT is seen to be a mildly progressive tax and that, contrary to popular belief, places the burden on higher-income households due to their higher consumption expenditure levels. Also, the VAT is seen to have possibly minimal effects on the welfare of lower-income households, since the VAT affects a very small percentage of the income of lower-income households.Item Restricted Determinants of household expenditure on education: the philippine case(2010-10-08) Bruno, Maria Jucine Vernalyn; Marasigan, Maia Joyce; Tecson, GwendolynInvestment on education is said to indirectly help in the alleviation of poverty. Philippines is a developing country that needs to improve the intellectual capacity of the majority if its man power in order to open opportunities for higher future incomes and escape inter-generational poverty. For consistency of data, the authors examined possible factors affecting household spending on education (HHSE) within the household using OLS regression. Variables including income, expenditure, household head's educational attainment and sex, family size and location of the family are tested. Among the variables, household head's sex is the only factor proved to be insignificant. Meanwhile, relationships that are found between these variables and the dependent variables are rather unanticipated. On the whole, the greatest factor affecting HHSE within the household is the educational attainment of household head.Item Restricted The effect of number and age of children on household expenditure(2005-03) Fellizar, Henrika Cheryl R.; Robles, Ma. Theresa Anna C.With the Philippines' rapid population growth and high fertility, the need to address population issues is urgent. Perceptions of the value and cost of children are known to influence fertility behavior. The effect of children on household expenditure has been used to illustrate the direct economic costs of children. This paper examines the impact of the number and age of children in the family on the consumption behavior of a household. Using data from the Family Income and Expenditure Survey (FIES) of 2000, it looks at how an additional child contributes to a family's expenditures by estimating a consumption function for different expenditure categories commonly regarded as basic necessities. Expenditure categories under study are food, utilities, clothing, education, medical care, housing, transportation and communication, and personal care and effects. Regression results show that, with the exception of utilities, additional children have a significant effect on household expenditure. Only food and personal care and effects expenditures were found to increase with additional children; clothing, education, medical care, housing, transportation, and communication expenditures generally decrease with an increase in the number of children. The findings of this study therefore suggest a reduction in the welfare of the members of a household and provide an argument for parents to prefer a smaller number of children and to choose quality over quantity. Through implementation of family planning, "beyond family planning", and human capital development programs built around motivating parents to desire a smaller family size, a good population policy can effectively guide parents in their child bearing decisions.Item Restricted Tax effects on household capital formation in the Philippines(2008-10) Caylao, Jerome V.; Morsequillo, Arlene V.This paper investigates the effect of taxes on the capital formation expenditure of Filipino households. This study, using data and variables from the 2003 Family Income and Expenditure Survey, defines household capital formation as outlays that include education, medical, house rental value, bank deposits, payments for insurance premiums. A new variable is derived from this definition. This variable (household capital formation) is then divided to the total expenditure of the family. The capital formation share to total expenditures is regressed against total income, family size, education of household head, sex of household head, region, grouping of the family's main source of income, income tax, real estate tax and other direct taxes. It is found out that certain regions, educational attainment and sources of income are significant to capital formation spending. Share of household capital formation to total expenditure would depend on the explanatory variables, such as the total income sex of the household head, educational attainment of the household head and the region the household is situated. More importantly, it was found out that taxes are significant to the equation, which implies that total tax payment has an effect on the proportion of capital formation spending of the household. Total taxes paid by the household affect the share of capital formation to total household expenditure negatively. Specifically, this means that increasing total paid taxes by a P100, 000 per year will decrease capital formation by 1.56%.Item Restricted Holiday effects on household savings(2009-03-31) Cruz, Roselle; Ramos, Leonore Alveen RamosThe Philippines has been known for its strong cultural and traditional values, and widespread practice of celebrating holidays. Recent surveys and studies on household saving behavior suggest that there is growing importance on people's motivation to save for the holiday. This paper studies how the number holiday affects the household saving behavior in the Philippines. Saving is an important instrument for consumption and reducing vulnerability to income shortfall (Orbeta 2006). We test our hypothesis that during longer holiday periods, savings rate will be high because people tend to save more to fund their holiday vacations. This study aims to answer how the number of holidays affects household savings and to find out if they have strong correlation with each other. The general motivation for this study is to understand the relationship of holidays in the saving patterns in the Philippines. In determining this relation it will create useful information on how people utilize their savings during holiday. Using a cross-sectional data, we conduct an Ordinary Least Squares Estimation on the determinants of savings. Holidays turns out to be insignificant in the regression with other determinants of saving. Including interaction terms in the regression resulted to~ varying effects on the magnitude of change induced by the number of holidays.Item Restricted Internal remittances and household expenditure behavior(2009-10-22) Geraldez, Patricia P.; Santos, Jose Manuel S.As the receipt of internal remittances has been closely associated with households belonging to the lowest income groups, a study on the potential effect of these remittances on spending behavior has long been overdue. Early studies conclude that remittances encourage unscrupulous consumption. However, recent empirical fundings tend to support a more optimistic view. To extend this debate, this paper explored the following problems: 1. Does the receipt of internal remittances affect household expenditure behavior?, 2. What is its impact on the household's propensity to consume or invest? and 3. Are the spending patterns of households receiving internal remittances "qualitatively different" from households receiving no remittances? To address the first and second questions, regression analysis was used. To address the third, marginal budget shares and expenditure elasticities were calculated. The fundings reveal that although there is no evidence that the receipt of internal remittances encourages investment, there is, at least, strong evidence that these are not "unscrupulously consumed". An analysis of the marginal budget shares for each remittance group reveals that the behavior of households receiving internal remittances is "qualitatively different" from households receiving no remittances, i.e., qualities or factors that affect marginal spending vary between goods and across remittance groups. On the whole, after controlling for total expenditures, internal recipients allocate more, at the margin, on housing, education and health and less on clothing and durable furniture, tobacco and alcohol than non-remittance recipients at the lowest expenditure levels.