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Item Restricted Financial inclusion, the inflation tax, and consumption inequality in the Philippines(2017) Arcilla, Angelo Rafael E. ; Tejano, Paolo Lorenzo ; Mendoza, Maria Nimfa F.High inflation acts as a regressive consumption tax, significantly impacting the poor. Including the poor in the formal financial system can help them weather the effects of high inflation. Financial inclusion allows individuals to augment their nominal money balances by saving and earning on deposits, as well as by taking out loans. Access to formal financial services has the potential to increase the purchasing power of the poor and reduce the inequality of consumption. This study uses panel regression analysis to determine the effects of financial inclusion on the inequality of consumption through the inflation channel. The researchers find that: (1) given low levels of financial inclusion, higher levels of inflation result in higher levels of consumption inequality; (2) given high levels of financial inclusion, higher levels of inflation result in lower levels of consumption inequality; (3) at all levels of inflation, financial inclusion reduces consumption inequality; and (4) at higher levels of inflation, financial inclusion reduces consumption inequality by a larger amount.Item Restricted Who will be on board the TRAIN to Inclusive Growth? an economic analysis on the impact of tax reform in the Philippines(2018-12) Carabio, Sheridan Lance A. ; Gonzales, Grace Mabel M.Z. ; Solon, Orville Jose C. ; Quimbo, Stella Luz A.This paper investigates the impact of the provisions of the new tax system brought by TRAIN Law Package 1 on household consumption across income deciles in the Philippines. Using the demand function and Log-Log Regression, we estimate the income and price elasticities of demand for rice, meat, fish, vegetables, and fruit commodities across all income deciles. These elasticities were further used to simulate changes in the dependent variable – the quantity of each commodity due to price and income. The simulation results show that on average, all commodities across income deciles show a negative percentage change in quantities consumed taking into account effects both due to income and indirect taxation. The first income decile shows the lowest coefficient relative to the highest income decile with -23.56 percent for rice, -22.49 percent for meat, -15.07 percent for vegetables, and -12 percent for fruits. For the fish section, the largest forecasted decrease in quantity consumed per household, relative to the tenth decile, is reflected in the fourth decile at 18.98 percent. However, the first decile still exhibits a significantly large reduction in quantity at 11.15 percent. This implies that all income deciles are expected to lose from the new tax system, with the lower income deciles to lose more, and the lowest income decile to lose the most.Item Restricted Consumption an the stock market in the Philippine: evidence from a vector autoregression approach(2013-10) Contreras, Sofia T.; Garcia, Czarina V.; Balanquit, Romeo Matthew T.This paper empirically analyzes the relationship among consumption, stock market returns, and stock market volatility using evidence from the Philippines over the period 1998-2013. Based on the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model, it is found that high volatility clustering occurs with high predictability in the Philippine stock market, but this does not lead to large changes in consumption. Results of the study using the Vector Autoregression (V AR) analysis also reveal that changes in the stock market do not Granger-cause changes in consumption.Item Restricted Patterns and determinats of fruits and vegetables consumption of different income groups in the Philippines(2011-03-28) Bartolata, Christine B.; Lao, Monina Nica L.; Desierto, Desiree A.This study assesses the observable effects of income and nutritional knowledge on the supposed nature of fruits and vegetables among different income groups - whether these goods are treated as inferior or normal goods. Using the household-level data from the 2006 Family Income and Expenditure Survey of the National Statistics Office which primarily profiles of the fruit and vegetable consumption of Filipinos on the basis of income while controlling for socio- demographic and economic factors like education, health-related and family matters. The results show that consumption of fruits and vegetables is an inferior good taking into consideration the decreasing budget share of these good as household income increases. Our findings also reflect that higher income of the high skilled occupational groups also lead to higher consumption when relating it to nutrition knowledge. In addition, inferiority of these goods is most evident in urban Luzon region while Visayas and Mindanao regions show otherwise. Overall, the patterns of fruit and vegetable consumption differ across the different regions and varying educational attainment and major occupational groups.Item Restricted Determinants of short-run electricity consumption in the Philippines(2018-01) Racadio, Lorenzo Romeo C. ; Salarda, John Renz G. ; Ravago, Majah-Leah V.Electricity is an essential need to power appliance needs of households. We want to determine how households consume electricity with the aim of determining what factors affect electricity consumption using the Household Energy Consumption Surveys of 2011 and 2004. Our regression is a log-level model regressing monthly electricity consumption against household characteristics, particularly income, energy conservation efficiency, temperature, appliance quantity and electricity price. Our findings suggest intuitive. However, increases in unidentified appliances and worse conservation efficiency lead to decreases in consumption. Most households that own unidentified appliances or have poorer conservation ratings tend to have lower incomes, hence the decrease in consumption. As a result, we conduct another set of regressions that consider relationships between income and appliance quantity, conservation rating and income, and temperature and electricity price. In the results, we see that income and appliance quantity are linked with increases in consumption, holding conservation rating and income constant respectively. The interaction of electricity price and temperature is associated with the trend that electricity consumption increases with increases in electricity price or temperature given the other variable. Meanwhile, counter intuitive increases in consumption associated with household conservation grade improvements lead us to conclude that there are deeper endogenous relationships present between conservation rating and other factors. Some policy options then to increase consumption pertain to incentives for urbanization and live births, and also conducting trade with countries that provide low cost appliances.