Household Decision-Making and Expenditure Patterns of Married Men and Women in Malaysia

This study tests two opposing models of household behavior, the income pooling hypothesis and the bargaining model, by examining the final decision-making and expenditure patterns of married men and women in Malaysia. The data used is from the responses of 1,778 married persons obtained from a survey of employed Malaysians. The results show that women are often the final decision-makers on everyday household expenditures while men make the final decisions on large household expenditures, but both men and women practice autonomy in decisions related to financial investments. In spending, variations are observed between men and women in their level and proportion of expenditure of certain categories of goods and services. Relative earning share is a significant factor in decision making as well as consumption expenditure. These results tend to support the bargaining model of household decision-making.     

THE MICROECONOMIC FOUNDATIONS OF MEASURING BRACKET CREEP and OTHER TAX CHANGES

We derive a measure of the bracket-creep-induced inflation tax based on an income-compensation function that recognizes that consumers substitute among deductible and nondeductible goods as the incentives to consume the goods change over time. The measure of the inflation tax is decomposed into a convenient function of marginal tax rates and the change in expenditures on tax deductible goods relative to nondeductible goods that are required to maintain a fixed level of utility. Tentative estimates suggest that the inflation tax as a percentage of constant utility income during the 1970s averaged about 1 percent per year.     

GROWTH, WELFARE, AND THE SIZE OF GOVERNMENT

Using an endogenous growth model in which government purchases directly affect aggregate productivity and utility, fiscal policy experiments conducted here indicate that the macroeconomic effects of changes in fiscal policy are at least as sensitive to the mix of spending cuts as they are to the mix of tax cuts. In fact, reducing the size of the government actually reduces growth and welfare freductions in government expenditures are heavily weighted towards reductions in public capital or if the proceeds are not used to reduce capital taxation. In addition, across-the-board spending cuts are not likely to significantly improve growth and welfare. ( JEL E62, 041)     

SECTORAL COMPOSITION OF GOVERNMENT SPENDING AND MACROECONOMIC (IN)STABILITY

This article examines the quantitative interrelations between sectoral composition of public spending and equilibrium (in)determinacy in a two‐sector real business cycle model with positive productive externalities in investment. When government purchases of consumption and investment goods are set as constant fractions of their respective sectoral output, we show that the public‐consumption share plays no role in the model's local dynamics, and that a sufficiently high public‐investment share can stabilize the economy against endogenous belief‐driven cyclical fluctuations. When each type of government spending is postulated as a constant proportion of the economy's total output, we find that there exists a trade‐off between public consumption versus investment expenditures to yield saddle‐path stability and equilibrium uniqueness. (JEL E32, E62, O41)     

THE IMPACT OF FISCAL POLICY ON PROFITS

This paper investigates the impact of fiscal policy on profits using panel data for 18 high‐income OECD countries during the period 1975–1999. We estimate a profit equation allowing a consistent treatment of the government budget constraint, and we try to disentangle the effects of different spending and taxation items. As far as public spending is concerned, our results strongly suggest that capital expenditures are associated with higher profits, while expenditures on goods and services and in particular on wages and salaries deteriorate profits. In general, “productive” expenditures seem to increase profits while the effect of “unproductive” expenditures is insignificant. Transport and communication expenditures seem to have a positive impact on profits. On the revenue side, we find that both direct and indirect taxation has a negative impact on profits. (JEL E62, H32, H54)     

Married women's resource position and household food expenditures in Cebu,Philippines

This study analyzes how married women use their access to and control over economic resources to increase household spending on food. Using data from Cebu, Philippines, where child malnutrition is high, this study finds that the more income women earn and control, the more households spend on food. Women's control over their income is particularly important for increasing food expenditures in the poorest households. In richer households, women who earn little of their own income also use spouse income transfers to increase food expenditures. The findings from this study suggest that in a developing country setting, improving women's economic status so that they earn and control more household resources can increase household spending on goods that benefit children.     

HETEROGENEITY IN STATE‐DEPENDENT UTILITY: EVIDENCE FROM STRATEGIC SURVEYS

A standard result of life‐cycle models under uncertainty is that optimizing individuals equate the expected marginal utility of consumption across states of the world if insurance is available at actuarially fair rates. A small empirical literature has suggested that the marginal utility of consumption is lower in less healthy states. We use a novel survey‐based measure to document significant heterogeneity in health‐state dependence across individuals largely orthogonal to standard controls. We further show that individuals value unhealthy states of the world more when facing work‐limiting disabilities than when facing disabilities requiring long‐term care, and when facing physical rather than mental disabilities. (JEL D12, I10)     

Consumption Patterns of Chinese Children

In the ten-year period from 1990 to 1999, children's consumption has increased dramatically in proportion to family income. In 85% of urban families, children's average consumption is equal to one third or more of the family's income. Resources are being directed to children's food and dietary supplements, toys, travel, computers and other electronic equipment, and educational resources. Children perceive that they have a significant influence on the family's financial decision-making. Problems related to children's consumption include indulgence in unnecessary or harmful purchases, and conspicuous consumption that cannot be sustained by the family's income. While some child-focused spending is viewed as enriching development, other expenditures may harm the family's economic well-being and foster an overly materialistic outlook among children.     

Gambling Households in Canada

This paper examines the distribution of gambling dollars in Nova Scotia, Saskatchewan and Canada and studies the impact of this spending on households. We focus first on how gambling expenditures are related to the level and source of household income as well as to other demographic characteristics such as age, education, household composition, geographical area, and sources of income. Next we analyze how gambling expenditures are distributed among those households that gamble. We show how expenditure patterns differ in the intensity of gambling as measured by the proportion of household income or total amount of dollars spent on gambling. Then we study the affects that gambling has on spending on household necessities, changes in net worth, retirement savings and household debt. Finally we determine whether gambling expenditures act as a substitute or a complement to other recreational spending on entertainment products and services. Throughout the paper we offer a comparative analysis of provincial and national data.     

Do Disabled Elderly Medicare Beneficiaries with Major Depression Make Less Use of a Consumer-Directed Home Care Voucher Benefit?

Older adults with major depression may underutilize consumer-directed long-term care. Systematic underutilization would create disparities in outcomes, undermining program effectiveness. The Medicare Primary and Consumer-Directed Care Demonstration included a consumer-directed indemnity benefit that paid for goods and services not financed by traditional Medicare. Overall and for most categories of goods and services there was little difference in use and expenditures between those with and without major depression. However, among those using the benefit to hire in-home workers, arguably the most important consumer-directed purchase, average spending for workers was about 30% lower for depressed persons. While our findings are generally reassuring for public policy, future research is needed to verify that major depression is associated with less spending on in-home workers.     

Experiential careers: the routinization and de-routinization of religious life

This article develops the concept of experiential careers, drawing theoretical attention to the routinization and de-routinization of specific experiences as they unfold over social career trajectories. Based on interviews and ethnographic fieldwork in two religious communities, we compare the social-temporal patterning of religious experience among newly religious Orthodox Jews and converted Muslims in two cities in the United States. In both cases, we find that as newly religious people work to transform their previous bodily habits and take on newly prescribed religious acts, the beginning of their religious careers becomes marked by what practitioners describe as potent religious experiences in situations of religious practice. However, over time, these once novel practices become routinized and religious experiences in these situations diminish, thus provoking actors and institutions in both fields to work to re-enchant religious life. Through this ethnographic comparison, we demonstrate the utility of focusing on experiential careers as a sociological unit of analysis. Doing so allows sociologists to use a non-reductive phenomenological approach to chart the shifting manifestations of experiences people deeply care about, along with the patterned enchantments, disenchantments, and possible re-enchantments these social careers entail. As such, this approach contributes to the analysis of social careers and experiences of ??becoming?? across both religious and non-religious domains.     

Modellvergleich und Ergebnisinterpretation in Logit- und Probit-Regressionen

In the social sciences logit and probit models are often used multivariate data analysis procedures for binary dependent variables. Both procedures can be thought of as resting on a linear model for an unobserved variable y* from which a nonlinear model for the probability of y?=?1 is derived. We first show that compared to linear models this nonlinearity leads to problems of interpreting results from such analysis. In particular odds ratios (exponentiated logit coefficients) often used in logistic regression are problematic in this respect. Instead we recommend using graphical procedures and reporting (corrected) average marginal effects (AME). Based on a series of Monte-Carlo simulations we next demonstrate that the regression coefficients from logit and probit models should not be compared between nested models. Because model building in the social sciences often employs a stepwise procedure a method allowing valid comparisons of effect sizes between models would be advantageous. Results from our simulation study show that average marginal effects and regression coefficients corrected by a method proposed by Karlson et al. (Sociological Methodology 42, 2012) lead to satisfactory results in many different scenarios. In contrast, y*-standardized coefficients are of limited utility and coefficients from a linear probability model should only be used with normally distributed variables.     

Exploring the relationship between experiential avoidance, alcohol use disorders, and alcohol-related problems among first-year college students

Abstract Objective: This study explored the relationship of experiential avoidance (eg, the tendency to avoid, suppress, or otherwise control internal experiences even when doing so causes behavioral harm) to alcohol use disorders and alcohol-related problems. Participants: Cross-sectional data were collected from 240 undergraduate college students in their first year in college between December 2009 and April 2010. Methods: Participants completed a diagnostic interview and online self-report survey. Results: Students with a history of alcohol abuse or dependence had significantly higher levels of experiential avoidance relative to students with no alcohol use disorder diagnosis. A hierarchical linear regression analysis found that experiential avoidance significantly predicted alcohol-related problems, even after controlling for gender and psychological distress. Furthermore, experiential avoidance mediated the relationship of psychological distress to alcohol-related problems. Conclusions: These findings suggest that experiential avoidance may play a role in problematic alcohol use among college students.     

Multilevel public goods game: Levelling up,substitution and crowding-in effects

In an online multilevel public goods experiment, we implement four treatments where we gradually increase the marginal per capita return of the global public good. First, we find evidence of an increase in the contribution to the global good (levelling-up effect). Secondly, subjects fund their higher contribution to the global good by reducing their contribution to the local good (substitution effect) rather than by increasing total contribution, i.e., the sum of their contributions to the local and the global good (marginal crowding-in effect). Moreover, we observe that total contribution increases as a consequence of the mere introduction of the global good (categorical crowding-in effect). Finally, we observe that subjects continue to contribute to both public goods even when they are dominated in terms of costs and returns.     

LIQUIDITY CONSTRAINTS and AGGREGATE CONSUMPTION BEHAVIOR

This paper presents time series evidence on the importance of liquidity constraints in aggregate consumption expenditures. In contrast to previous studies, I find the proportion of consumption attributable to liquidity constrained behavior to be large and highly statistically significant. The estimation pays careful attention to the problems of stochastic consumption and temporal aggregation, and the estimates are shown to be robust to alternative specifications involving costly adjustment of consumption, public spending, and to stochastically varying rates of return.     

The index of consumer sentiment: Predictability and predictive power in the EEC

This paper investigates the mutual predictability between the Index of Consumer Sentiment and non-attitudinal economic indicator using linear regressions on aggregate time-series data for several EEC member countries. In the first part the ICS is regressed on economic indicators to show that a sizeable part of the fluctuations in the ICS are captured by the economic series. In a second part, new passenger automobile registrations are regressed on the ICS and on economic indicators to show that the ICS is al most a marginal determinant of consumer spending on new passenger cars. The general conclusions derived from the study strengthen the findings from previous studies which are sceptical about the usefulness of the ICS in the explanation and forecasting of discretionary consumer spending.     

Foster care reunification: An exploration of non-linear hierarchical modeling

Hierarchical or multilevel models are based on the same fundamental concepts that apply to simple linear models. The linear forms of these models can be interpreted with relative ease as parameter estimates do not differ in magnitude or interpretation from standard non-hierarchical models. Non-linear hierarchical models, however, are more complex as the introduction of a random intercept means that parameter estimates must be interpreted as “subject-specific” rather than “population-averaged”. Depending on the specifics of the data being modeled, these parameters may be very different in magnitude. In this article we provide two examples of non-linear hierarchical modeling using administrative child welfare data. For each example, we estimate the odds of reunification for a cohort of children in California using both standard logistic regression models and random intercept models.     

TAX EFFECTS VERSUS BUDGET EFFECTS ON LABOR SUPPLY

This paper analyzes the effects on labor supply of parallel changes in taxes and public spending of various types. A number of important recent developments in the labor supply behavior of households are highlighted by such a study of various types of "budget effects," rather than isolated "tax effects." This comes out in particular when considering cross substitution effects on labor supply of changes in public spending on goods and services or of the subsidization of goods and services provided by private markets. Moreover, the income effects of tax changes are often mitigated, or possibly even removed, by the income effects of the accompanying expenditure changes.     

CONSPICUOUS SPENDING AND THE INCOME DISTRIBUTION OF SOCIAL GROUPS

Using South African household expenditure data, we analyze how the spending of a household on visible goods, such as jewelry and clothes, depends on the distribution of income within its social group. We find that this spending is positively correlated with the share of peers who possess a similar income level to the household, what we dub the “local income share.” Moreover, we find that the spending of a household on visible goods is positively correlated with the average income of peers that are poorer than this household. We interpret this as evidence for cascade effects through which income changes among the poorest in the social group can trigger adjustments in the visible spending patterns of the wealthy. In line with previous research (Charles et al. 2009), we also find that visible spending of a household is negatively correlated with the average income of its social group. We present a simple model of status competition based on Hopkins and Kornienko (2004) that synthesizes these effects and can account for our results. (JEL D12, D31, O12)