scholarly journals The Impact Of Price Changes On Demand Among Poor Households In A South African Township

2014 ◽  
Vol 13 (3) ◽  
pp. 463
Author(s):  
Dorah Dubihlela ◽  
Tshediso J. Sekhampu

The study reported in this article used household level data to analyse the impact of recent price changes on the demand for food and non-food items among households of different poverty statuses in a township of Bophelong, Gauteng Province, South Africa. The unprecedented rises in prices prompt households to make adjustments on their consumption patterns as real income declines. In this paper, the poor are separated from the non-poor by means of an income poverty line and their responsiveness to price changes compared. Of the sampled population, 56% were found to be poor of which 26% of the participants were categorised as moderately poor, with 30% extremely poor. Changes in demand patterns of households are estimated by computing the demand elasticities that explain the level of demand by a household given the structure of relative prices faced and household income. The study reports that households respond differently to rising prices depending on their poverty levels.

Author(s):  
Unmesh Patnaik ◽  
K Narayanan

Purpose – This paper aims to examine the consumption behaviour and effectiveness of coping mechanisms adopted by households living in disaster-prone regions of rural India to cope with climatic aberrations and extremes using household-level data. In developing countries like India, poor households living in rural regions face risks to their livelihood due to climatic aberrations like deficient monsoon spells and rainfall gaps. Although these risks are covariate, the impact depends on location and the relative capacity of the people to cope with them. Design/methodology/approach – Using household-level data, this paper attempts to examine the consumption behaviour and effectiveness of coping mechanisms adopted by households living in these areas to hedge against the risks. A tobit and a multivariate probit model is used in the process. Findings – Based on the empirical analysis, and subject to the assumptions and the usual limitations of data, the findings suggest that households resort to consumption smoothening by liquidating their assets or decreasing consumption. Originality/value – They adopt a wide variety of ex-post risk-coping measures with limited success to overcome the shocks to their livelihood. Household-specific characteristics like age and education level of the household head are important in the choice of a particular coping option along with other key variables.


Water Policy ◽  
2009 ◽  
Vol 12 (2) ◽  
pp. 237-247 ◽  
Author(s):  
Stacey Noel ◽  
Hoang Thi Phuong ◽  
John Soussan ◽  
Jon C. Lovett

A number of rural household-based productive activities, such as kitchen gardens, livestock rearing and micro enterprises, are dependent on adequate supplies of domestic water to operate. This paper examines whether improved access to piped water can facilitate these types of activities, particularly for poor households. Using data from rural Vietnam, we find that most household enterprises use non-metered water and have very small profit margins. Thus, the evidence suggests that these enterprises may be better supported by a household-level water supply infrastructure, such as well pumps and rainwater catchment tanks, rather than by piped systems in rural areas. We also found an unanticipated link between operating small-scale food production businesses and raising livestock: for many households, waste products from food-based micro enterprises were used for rearing pigs, and this enabled business owners to expand their pork production, a significant source of income and prosperity in rural Vietnam.


2017 ◽  
Vol 12 (9) ◽  
pp. 77 ◽  
Author(s):  
Alessandra Amendola ◽  
Marinella Boccia ◽  
Gianluca Mele ◽  
Luca Sensini

This paper evaluates the impact of access to credit from banks and other financial institutions on household welfare in Mauritania. Household level data are used to evaluate the relationship between credit access, a range of household characteristics, and welfare indicators. To address the threats of potential endogeneity, an index of household isolation is used to instrument access to credit. Evidence on the validity of the exclusion restriction is provided showing that household isolation is unrelated with households and area characteristics six years prior to the measurements on which this analysis is based. Results show that households with older and more educated heads are more likely to access financial services, as are households living in urban areas. In addition, greater financial access is associated with a reduced dependence on household production and increased investment in human capital. The policy conclusions from our analysis support strategies for expanding financial infrastructures in underserved rural areas of Mauritania.


2016 ◽  
Vol 46 (2) ◽  
pp. 205-223 ◽  
Author(s):  
Gary A. Hoover ◽  
Ryan A. Compton ◽  
Daniel C. Giedeman

Using household-level data from 1980 to 2010, we examine whether economic freedom, as measured by the Economic Freedom of North America Index, has similar effects on white household income as it does on black household income. Our findings suggest that the positive effect of economic freedom found in most studies affects black households less than white households. Further, using the Oaxaca decomposition, our results show that economic freedom is an important factor explaining the gap between black and white household incomes.


Author(s):  
Norbert J Michel

Abstract The first file-sharing software, Napster, was shut down in 2001, but the copying technology’s impact on the music industry is still passionately debated. This paper uses micro-level data from the Consumer Expenditure Survey to examine the impact of Internet file sharing on music sales. Music industry representatives argue that the practice decreases CD sales, while supporters of file-sharing allege the practice could actually increase sales. Using household-level data from the Consumer Expenditure Survey, we find support for the claim that file-sharing has decreased sales.


2021 ◽  
Vol 17 (01) ◽  
Author(s):  
Falak Sher

The objective of this study is to analyze household demand system for Pakistan by estimating various elasticities of demand. This study combines nine different rounds of Household Integrated Economic Survey data to estimate Almost Ideal Demand System (AIDS). Household level data are supplemented with rich price information available for all the twelve months of the nine years. This approach yields efficient estimates of income and price elasticities, which are non-linear combinations of the parameters of AIDS. Standard errors for all the elasticity estimates are computed on the basis of Monte-Carlo simulations. The results show that household demand responses to income changes are similar between rural and urban households, while the response to price changes differ considerably. On average, rural households are found to be more responsive to price changes than the urban households. The study recommends that on equity grounds transport and communication and miscellaneous non-food goods and housing can be taxed more heavily as compared to other goods.


2018 ◽  
Vol 26 (2) ◽  
pp. 287-299
Author(s):  
Kim Abildgren

Purpose The purpose of this study is to explore the impact of household leverage on consumption in Denmark during the Great Depression in the 1930s. Design/methodology/approach A range of consumption functions are estimated on the basis of household-level data from the Expenditure and Saving Survey of 1931. Findings The estimations show significant negative marginal effects of various measures of leverage on homeowners’ non-durable consumption. The magnitude of the estimated effects suggests that leverage contributed significantly to the economic downturn during the Great Depression by depressing consumer spending of homeowners. Practical implications Gross debt levels of homeowners are not only of direct importance for financial stability but also have implications for macroeconomic stability, which again might affect the stability of the financial system. These findings seem to be in line with the focus on household leverage in the macroprudential oversight performed by regulators and central banks in many countries. Originality/value This paper is the first study of the leverage channel in the private consumption function using household micro data from the Great Depression.


2021 ◽  
Vol 58 (1) ◽  
pp. 33-49
Author(s):  
Kristina Petrova

Does internal migration following natural hazards increase the likelihood of protests in migrant-receiving areas? To address the question, this study first looks at the extent to which experiencing different forms of natural hazards contributes to a household’s decision to leave their district of residence. In a second step, the article explores whether that internal migration flow increases the number of protest events in migrant-hosting districts. In doing so, it contributes to the existing debate on the extent to which natural hazards impact the likelihood of social contention, and the role of migration as a linking pathway in that relationship. The impact of climate-related shocks may erode household assets and therefore adaptive capacity in ways that can eventually influence decisions to migrate to larger urban centres. Although migrants are agents of economical and technological change, urban environments may impose challenges to recently arrived migrants and their host communities, affecting the motivations and mobilization resources of urban social groups to protest. As a consequence, the probability of urban unrest in these locations is expected to increase. To test this, I use geo-referenced household-level data from Bangladesh for the period 2010–15, which records households’ experiences of different forms of natural hazard and internal migration flows, available from the Bangladesh Integrated Household Survey. It combines this with data on protests, derived from the Armed Conflict Location and Event Data. Findings suggest that flood hazards in combination with loss of assets increase the likelihood of internal migration, but unlike other types of domestic mobility, hazard-related migration does not increase the frequency of protests in migrants’ districts of destination.


2019 ◽  
Vol 66 (5) ◽  
pp. 559-588 ◽  
Author(s):  
Katarzyna Kochaniak

The paper investigates the occurrence of three categories of household deposits in 15 euro area countries - guaranteed, high value, and very high value - which, according to the European Banking Authority, differ in terms of their sensitivity to outflows under stress. The analysis is based on household-level data and applies a logit model. Its main finding is that the impact of wealth and socio-demographic features of households on their propensity to possess the deposits was opposite regarding guaranteed and unguaranteed deposits. It proves two separate profiles of households who declared deposits in the euro area. For selected member states, the adoption of the single limit within guarantee schemes was assessed as an incentive which may strengthen the deposits? resilience on withdrawals, and thus positively influence the funding stability of credit institutions.


Author(s):  
Salyha Zulfiqar Ali Shah ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq

The strategies expected to mitigate poverty tend to identify factors that are closely related to poverty and that could have influenced the policy implications. A household level data was collected to examine the poverty status and factors affecting poverty in Southern Punjab. A logistic regression technique was employed for the present analyses. The findings show that age and education of the household head, own house, spouse participation, remittances, number of earners in the household and physical assets reduces the probability of being poor in Southern Punjab. However, large household size, occupation in the primary sector, high dependency ratio and mental disability are associated with an increased probability of being poor in Southern Punjab. Government should adopt effective policy measures to generate employment and encourage the attainment of education for the poor households for the mitigation of poverty in this region.


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