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Item Restricted Where do remittances go? a comparative analysis on the inflows of remittance and the expenditure behavior of PH households during 2003 and 2021(2023-07-11) Aguila, Liane Diane L.; Cabatay, Hannah Jo Marie C.; Alburo, Florian A.The number of Overseas Filipino Workers (OFWs) has steadily increased since the 1950s. Remittances sent back to families at home have not only shielded the country from economic downturns but have also benefited households in financing their necessities. This study analyzes the relationship between remittances and household expenditure behavior during an almost two-decade period by looking at the effect of remittance in the expenditure share of the following items: food, food eaten at home, food eaten outside, health, education, occasion, recreation, and transportation and communication, using the FIES 2003 and 2021 dataset from the Philippine Statistics Authority. The Working-Leser Model was used wherein three (3) econometric techniques were performed to address endogeneity, heteroskedasticity, and the presence of zero values—Instrumental Variables Estimation using Two-Stage Least-Squares Regression, Quantile Regression, and Censored Tobit Analysis, respectively. All three techniques revealed consistent findings that remittances have positive significant effects on food eaten outside, health, and education expenditures, while there are negative significant effects on food and food eaten at home during both 2003 and 2021. The other expenditures show varying results in terms of sign and significance. Further, results show that there is stability in the expenditure behavior of households receiving remittances in terms of education, occasion, and recreation; that is, the effect of remittance is not significantly different in 2003 and 2021. This can be explained by the similar shocks during those years.Item Restricted Impact of inflation in the consumption of poor households in the Philippines(2018) Fernandez, Allison Bluette Diwa ; Salgado, Dana Mae Dadal ; Reside, Renato Jr. E.Within the past years, there has been concerning increases in inflation rate in the Philippines. These increases pose impacts on different macroeconomic sectors such as agricultural, financial, economic etc. Thus, the research focuses on the impacts of the changes in inflation rate to the populace, which are the basic unit of a nation. Poverty, as one of the major problems the Philippines is facing throughout the years, has been the focus of the government by making several projects such as the conditional cash transfer, also known as Pantawid Pamilyang Pilipino Program (4Ps) and KALAHI Comprehensive and Integrated Delivery of Social Services Project to empower poor communities and provide monetary assistance. With these, the study aims to discuss the effect of inflation in the lower income households by measuring the changes in consumer spending and observing the trends of consumption of poor households during high and low inflation rate through various statistical methods.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 An optimal taylor rule for the Philippines: a macro-econometric optimization problem in an inflation -output variability tradeoff(2011-10) Dela Cruz, Marphil A.This paper presented an optimal monetary policy for the Philippines in Taylor rule form relevant to the period 2002 to 2009 given a choice between inflation and output variability. A macroeconomic model composed of inflation and output gap equations using empirical data from 1980 to 2009 were estimated. A loss function representing the central bank utility in relation to output-inflation variability trade-off was specified. The process was started by setting the coefficients in the loss function that have direct repercussions regarding the importance placed between output and inflation stability. Results showed that for every percentage point the Bangko Sentral ng Pilipinas (BSP) foresees inflation next year to deviate from the target, ceteris paribus, interest rate should be increased by .7607 percentage point during the present year no matter what the current output gap is. By lowering interest rate, BSP would be able to raise output above its normal level, which causes an upward pressure on prices. On the other hand, efforts to tame inflation through interest rate may lead to more output instability. The interest rate smoothing behavior ofBSP was shown to be a constraint in terms of the degree up to which inflation or output can be stabilized.