Impact of foreign remittances on school enrolment and educational expenditures in district Peshawar, Pakistan

This study aims to identify the effects of foreign remittances on school enrolment and the educational expenditures of children in the Peshawar district. Primary data were acquired by simple random sampling and a questionnaire. Correspondingly, the logit approach and Heckman selection theory were utilized to examine school enrolment and educational expenses. The marginal effects were evaluated to determine the co-efficient. The study's findings indicate that Per Capita Remittances (PCRM) have a highly substantial and beneficial effect on children's school attendance, with a (10.8%) point increase in school enrolment for every 100 rupees rises in Per Capita Remittances (PCRM). Suppose a household's Per Capita Income (PCIM) improves by one hundred rupees, the probability of children enrolling in school increases by (0.17). The results indicate that PCRM and educational costs per kid are significantly and positively correlated. Educational spending per child increases by 12.01 rupees for every 100 rupees rise in family remittances per capita, whereas every 100 rupees increase in per capita income increases educational expenditure per kid by (8.38 PKR). Which leads to an 8.38 % marginal propensity to spend on child education.

Makalah pengantar ekonomi

Perekonomian dua sektor merupakan penyederhanaan dalam mempelajari sistem perekonomian secara keseluruhan. Keseimbangan dalam perekonomian dua sektor merupakan keseimbangan dari sisi pendapatan dan sisi pengeluaran yang dilakukan oleh sektor rumah tangga dan sektor swasta, dengan mengabaikan sektor pemerintah dan sektor luar negeri.Perilaku pengeluaran yang dilakukan oleh sektor rumah tangga bisa dilakukan dengan membuat fungsi konsumsi dan fungsi tabungan, untuk melihat bagaimana perubahan pendapatan terhadap tingkat pengeluaran konsumsi dan tabungan. Kecenderungan bagi sektor rumah tangga untuk melakukan konsumsi disebut dengan Marginal Propensity to Consume (MPC). Sedangkan kecenderungan bagi sektor rumah tangga untuk melakukan tabungan disebut dengan Marginal Propensity to Save (MPS).

Measurement and Analysis of Total Local Production Effect on Investment Spending in Iraq from 1990-2018

Investment is one of the important economic activities that occupies fundamental place in the priorities of economic studies because the size of investment determines the volume of production and income and then the rate of economic growth and contributes to pushing the wheel of economic growth, so this research tries to measure the function of investment spending in the Iraqi economy during the extended period From 1990-2018, using the ARDL model, the results of this study showed that there is a long-term equilibrium relationship between income and investment spending and that investment spending depends largely on income, meaning that the relationship between investment spending and income is positive, and the marginal propensity to invest is 0.13.

Farm Product Prices, Redistribution, and the Early U.S. Great Depression

We argue that falling farm product prices, incomes, and spending may explain 10–30 percent of the 1930 U.S. output decline. Crop prices collapsed, reducing farmers’ incomes. And across U.S. states and Ohio counties, auto sales fell most in crop-growing areas. The large spending response may be explained by farmers’ indebtedness. Reasonable assumptions about the marginal propensity to spend of farmers relative to nonfarmers and the pass-through of farm prices to retail prices imply that the collapse of farm product prices in 1930 was a powerful propagation mechanism worsening the Depression.

Who spent their COVID-19 stimulus payment? Evidence from personal finance software in Japan

In response to the COVID-19 crisis, governments worldwide have been formulating and implementing different strategies to mitigate its social and economic impacts. We study the household consumption responses to Japan’s COVID-19 unconditional cash transfer program. Owing to frequent delays in local governments’ administrative procedures, the timing of the payment to households varied unexpectedly. Using this natural experiment, we analyze households’ consumption responses to cash transfers using high-frequency data from personal finance management software that links detailed information on expenditure, income, and wealth. We construct three consumption measures: one captures the baseline marginal propensity to consume (MPC), and the other two are for the lower and the upper bound of MPC. Additionally, we explore heterogeneity in MPCs by household income, wealth, and population characteristics, as well as consumption categories. Our results show that households exhibit immediate and non-negligible positive responses in household expenditure. There is significant heterogeneity depending on various household characteristics, with liquidity constraint status being the most crucial factor, in line with the standard consumption theory. Additionally, this study provides policymakers with insights regarding targeted cash transfer programs, conditioning on labor income, and liquidity constraints.

Conspicuous Consumption of Luxury Goods in the Kingdom of Saudi Arabia: Applied Study on Jeddah City: الاستهلاك المظهري لسلع الرفاهية في المملكة العربية السعودية: دراسة تطبيقية على مدينة جدة

This study aims to analyze the conspicuous consumption of luxury goods in Kingdom of Saudi Arabia. To achieve this, the descriptive analytical and econometric approach was employed to describe the phenomenon, and review the theoretical and applied literature, to come out with the most important motivations of this type of consumption. In addition, a questionnaire was distributed to 712 individuals in Jeddah city. Through analyzing and estimating the consumption function to measure the effect of disposable personal income, alongside: gender, marital status, age, educational level, and employment status, on the consumption of luxury goods. The results indicated that the disposable personal income is a major determinant of luxury goods consumption. The marginal propensity to consume was estimated at 0.045, while the elasticity of income demand is 0.431, indicating that luxury goods are considered as necessary for Saudi consumer. The study concluded that economic rationalization requires more social awareness to distinguish between what is necessary and luxury, and between productive consumption and conspicuous unrationed consumption. Consequently, the study recommended the necessity of raising the level of awareness of the need to rationalize consumption and the importance of saving and investment. This in addition to the importance of developing an approved classification for the consumption’s items. It is also important to provide detailed statistical data, to support and stimulate in-depth research in the areas of household consumption expenditure and its ordinary and conspicuous patterns, so as to guide reform policies that effectively contribute to achieving the country’s aspirations and long-term strategies.

Research on the Path of China Cities Service Consumption Upgrading

Based on the panel data of “first-line cities” and “new first-line” cities from 2006 to 2018, this paper constructs an extended linear expenditure system model (ELES) to empirically study the path law of service sub-consumption upgrade. Based on the full-sample OLS estimation, it is found that the overall marginal propensity for service consumption in the sample cities is 0.418, of which the sub-consumption propensity for cultural, entertainment and education services is the most obvious, followed by medical and health services, and transportation and communication services are the lowest. Based on service subconsumption, the research on price and income elasticity found that the expenditure and income elasticity of cultural entertainment and education, which has the most significant marginal propensity to consume, is the largest, while the price and income elasticity of health care services is the smallest. An empirical test based on sub-samples found that the marginal service consumption propensity of “first-line cities” and “new firstline cities” are 0.558 and 0.379, respectively; in terms of service breakdown, “first-line cities” have propensity to consume cultural entertainment and education services Significantly higher than the “new first-line cities”, the sub-item propensity to consume in medical and health services is slightly higher, and the sub-item propensity to consume in transportation and communication services is slightly lower.