Lottery expenditures in Canada: a regional analysis of determinants and incidence

This article examines two issues; first, it evaluates the statistical significance of a number of socio-economic and demographic variables on the level of household lottery expenditures in the six regions of Canada. While some household characteristics vary in the extent to which they significantly affect the level of lottery expenditures across regions (wealth, age, occupation, mother tongue and urban location, for example), others are significant in every region. Regional consistency exists in the statistical significance of after tax household income, sex and education of the head of household – lottery expenditures increase as incomes increase; lottery expenditures are significantly lower for female heads of households than for their male counterparts; lottery expenditures decline as the education level of the head of household increases. Second, lottery expenditures are found to be regressive, although the degree of regressivity is less than for lotteries in the United States.     

The Impact of the German Child Benefit on Household Expenditures and Consumption

The German Child Benefit (‘Kindergeld’) is paid to legal guardians of children as a cash benefit. The benefit does not depend on household income or other household characteristics. I use exogenous variations in the amount of child benefit received by households in the German Socio‐Economic Panel to estimate the impact of a given change in the child benefit on food expenditures of households, the probability of owning a home, rent per square meter, measures of the size of the home, as well as parents’ smoking behavior and parents’ alcohol consumption. Households primarily increase per capita food expenditures in response to increases in child benefit, and they also improve housing conditions. The effect of child benefit on per capita food expenditures is larger for low‐income households compared to high‐income households. I do not find a significant effect of child benefit on parents’ smoking or drinking.     

Information feedback and contest structure in rent-seeking games

We investigate the effects of information feedback in rent-seeking games with two different contest structures. In the share contest a contestant receives a share of the rent equal to her share of rent-seeking expenditures, while in the lottery contest a contestant wins the entire rent with probability equal to her share of rent-seeking expenditures. In share contests average expenditures converge to equilibrium levels when subjects only get feedback about own earnings, and additional feedback about rivals' choices and earnings raises average expenditures. In lottery contests information feedback has an opposite, and even stronger, effect: when subjects only get feedback on own earnings we observe high levels of rent dissipation, usually exceeding the value of the rent, and additional feedback about rivals' choices and earnings has a significant moderating influence on expenditures. In a follow-up treatment we make information feedback endogenous by allowing contestants in a lottery contest to make public or private expenditures. Subjects make the vast majority of expenditures privately and overall excess expenditures are similar to the lottery contest with own feedback.     

Household Use of Agricultural Chemicals for Soil-Pest Management and Own Labor for Yard Work

In spite of its potential health and environmental risks and contribution to agribusiness, the use of agricultural chemicals for yard care has not been well studied. In our discrete-continuous choice model, estimated with data from a national survey, a household chooses how much money, if any, to initially spend on types of agricultural chemicals and applicators and how much time to subsequently spend on other yard work. Households in big cities or with large gardens are more likely to use organic chemicals. The probability that a household chooses a mix of do-it-yourself and hired applications of synthetic chemicals increases with income, age, and the presence of preschoolers. Among households that apply only synthetic chemicals without hired help, those with young children, with higher incomes, in big cities, and with male heads spend more on the chemicals. The time that such households spend on other yard work increases with expenditures on the chemicals. Cancellation of a pesticide registration might create an extra private cost for households with young children even though the ban might reduce external costs.     

Uncertainty,inequality and consumption preferences in urban China

In this paper we present an uncertainty–inequality–consumption model and empirically investigate the effect of uncertainty on the consumption behaviors of urban households with varying levels of socio-economic status in China. We observe that the condition of households that suffered from socio-economic inequality with respect to total consumption, educational expenditures, medical expenditures, and durable consumption worsened relative to other households when faced with income uncertainty. Income uncertainty did not affect the housing consumption of households that suffered from socio-economic inequality, but it substantially decreased their ability to consume other durables. As a result of the introduction of the modern enterprise system and the reform of the housing distribution system, households with a member employed in a management position suffer larger shocks of income uncertainty in total consumption, educational expenditures, medical expenditures, and housing consumption relative to household with all members employed in worker positions in 2002. Uncertainty with respect to medical and educational expenditures had more substantial effects on the non-durables consumption of low-income households than that of other households in 2002.     

Family decision-making for educational expenditure: new evidence from survey data for Nigeria

This study examines the determinants of educational expenditures by households in Nigeria. Data from the Nigerian General Household Survey, Panel 2012/2013, Wave 2 was used and a double-hurdle model was employed for the analysis. The results suggest household income, the age, education, gender of the household heads and urban versus rural residence have a significant impact on the decision to spend on education. Such expenditures are income elastic overall, but are very different in magnitude for low income compared to higher income families. It is found that the income elasticity of education expenditures are approximately four times greater for households in the bottom two-thirds of the income distribution than for those on the top one-third of the income distribution.     

The impact of digital finance on household consumption: Evidence from China

Using panel data from the China Household Finance Survey (CHFS) in 2013, 2015, and 2017 and the digital inclusive finance index developed by Peking University, this study examined impacts of the digital inclusive finance on household consumption and explored its mechanisms. Results suggest that the digital inclusive finance could promote households consumption. A heterogeneity analysis showed that households with fewer assets, lower income, less financial literacy and in third- and fourth-tier cities experienced larger facilitating effects of digital finance on consumption compared to their counterparts. For consumption categories, digital finance was positively correlated with food, clothing, house maintenance, medical care, and education and entertainment expenditures. In terms of consumption structure, digital finance mainly promoted the recurring household expenditures rather than the non-recurring expenditures. Further analyses based on the mediating model found that online shopping, digital payment, obtainment of online credit, purchase of financing products on the internet and business insurance, were the main mediating variables through which digital finance affected household consumption.     

The Impact of Inheritance on the Distribution of Wealth: Evidence from Great Britain

Using the British Household Panel Survey, we investigate the role of inheritance in shaping the distribution of household wealth in Great Britain during 1995–2005a period characterized by a substantial increase in wealth and an equally important decrease in wealth inequality. Abstracting from behavioral effects, we find that inheritances received during this period accounted for 30 percent of the increase in wealth of inheritors. Regression estimates of the effect of inheritance on wealth accumulation suggest that households spend 30 percent of their inheritances on average, and that there is substantial heterogeneity in household responses. Households that accumulated more wealth saved a larger share of their inheritances, as did middle aged households and those with lower initial wealth. Although inheritances are highly unequal they had a small impact on overall wealth inequality. This mainly reflected the fact that their size relative to other sources of wealth was very small.     

Non-farm Income and Consumption Expenditures in Rural Bangladesh: Empirical Evidence from Multilevel Regression Modelling

This study examines the effects of non-farm income on household consumption expenditures in rural Bangladesh. A two-stage endogenous treatment effect model is built on data from a nationally representative Household Income Expenditure Survey (HIES) 2010 to control selection bias. The HIES follows a hierarchical data structure because the survey is based on two-stage stratified sampling. A multilevel mixed-effects linear regression model is used to capture the unobserved heterogeneity between clusters (PSUs) along with revealing important factors. Results reveal that non-farm income has a significant positive effect on household’s consumption expenditures and non-farm income recipient households spend about 29% more than their counterparts. In addition, higher level of per capita income, education, smaller family size and lower dependency ratio are found to be more effective in increasing consumption expenditures of rural households. Significant cluster-level variations are observed in the analyses. This study recommends that non-farm income generating activities should be encouraged among rural households as this would raise their consumption expenditures and hence, improve welfare and living standards among them.

     

The effect of school capital investments on local housing markets and household sorting in California

In this paper, I investigate what effect school capital investments have on housing values and household location choice in the context of the Tiebout model. This research identifies an exogenous variation in school capital investments by exploiting the lottery allocation of entitlement to an interest-free construction bond among districts in California. Although the lottery is exogenous, additional non-lottery allocation complicates identification. This paper develops an empirical model based on sample selection methods in order to create a counterfactual state in which additional non-lottery allocation would not have existed. I find that receiving the interest-free construction bond increases school capital expenditure and housing values at the district level. I view the increase in housing values as the capitalization of school capital investments. I find little evidence for the effect of the interest-free construction bond on household sorting and student’s academic outcomes.     

A Systemic Debt Payoff Policy

The average family in the US takes on debt to buy homes, to get education, and sometimes to even pay for normal daily expenditures. Outstanding debt generates a stream of rents to creditors and has become a significant burden on many households. A policy of household debt forgiveness could increase both economic equality and individual liberty. Under what conditions might such a policy be socially acceptable and what would be the implications of such a policy? For debt forgiveness to gain social acceptance the U.S. population would have to perceive the policy as fair and believe that such a program would treat all households equally. Furthermore, any such policy would be politically impossible if it stripped asset owners of money due or would not substantially lower household debt levels. This article explores some possible parameters that a politically feasible policy would contain, and it offers an estimate of policy costs.     

The Distribution of Household Health Expenditures in Australia*

Out‐of‐pocket health expenditures in Australia are high in international comparisons and have been growing at a faster rate than most other health costs in recent years. This raises concerns about the extent to which out‐of‐pocket costs have constrained access to health services for low income households. Using data from the ABS Household Expenditure Survey 2003–2004, we model the relationships between health expenditure shares and equivalised total expenditure for categories of out‐of‐pocket health expenditures and analyse the extent of protection given by concession cards. To allow for flexibility in the relationship we adopt Yatchew's semi‐parametric estimation technique. This is the first detailed distributional analysis of household health expenditures in Australia. We find mixed evidence for the protection health concession cards give against high out‐of‐pocket health expenditures. Despite higher levels of subsidy, households with concession cards do not have lower out‐of‐pocket expenditures than non‐cardholder households except for the highest expenditure quintile. Cards provide most protection for GP out‐of‐pocket expenditures.     

To Work Oneself out of Poverty: The Dutch Experience 1989–96

This paper investigates the effect of finding work by one of the household members on the probability of escaping from poverty in the Netherlands. For households with non-active heads, finding work by the head of the household is the most important (investigated) event connected with exiting poverty, nearly a third of all poverty endings. However, finding a job by the head of the household does not guarantee one leaving poverty. In practice, the success rate yields 25 percent. A multivariate analysis shows that finding a job by the head of the household increases the chance of leaving poverty with 22 percent points. So, some exits from poverty are a result of other factors or are due to selectivity of the job-finders. This difference is much larger when partners or (adult) children find jobs.     

The effectiveness of home energy audits: A case study of Jackson,Wyoming

This study examines the factors that influence households to adopt modifications recommended by home energy audits and whether these audits lead to significant reductions in electricity use. Household decisions after the audits are recorded along with the corresponding recommended modifications and the offers for co-funding. A discrete choice model of the household decision after the audit is estimated. The results indicate that the potential improvement in heating efficiency from the proposed modifications increase the probability of implementing conservation measures. Co-funding offers also significantly raise the odds of accepting the modifications but are relatively less important than anticipated efficiency improvements. Several approaches are used to determine whether and how much energy is saved after the audits. Electricity demand models are estimated using data two years before and after each household audit. For households who decide to modify their houses after the audit, monthly average electricity use per square foot decreases 7%. While there is an estimated 2% reduction in electricity use attributed to the audit by households who decided not to adopt the proposed modifications, this reduction is not statistically significant, casting doubt on the presence of modifications in behavior from the audit information itself. For all households audited, the results from the electricity demand models suggest that the LVE home energy audit program reduced household electricity use 4.7%. In contrast, a differences-in-differences approach using synthetic control groups based upon a smaller but still sizeable sample of 2000 observations finds that home energy audits reduce household electricity use by more than 10%. Overall, these findings suggest that home audits result in modest but significant reductions in energy use and that co-funding encourages investments that otherwise may not be privately optimal.     

AN EVALUATION OF SUBJECTIVE POVERTY DEFINITIONS: COMPARING RESULTS FROM THE U.S. AND THE NETHERLANDS

In this paper, results of applying the subjective definition of poverty, introduced by Goedhart et al. (1977), in the U.S. and the Netherlands are compared. This definition focuses on the monetary amounts which people consider necessary to make ends meet for their households as provided in response to the Minimum Income Question (MIQ). National data from both countries in the early 1980s are analyzed. In regressions of reported minimum income, corrections are made for the omission of income components and selective non-response. For the first time the relationship between fixed expenditures and the MIQ is examined. Factors significantly related to reported minimum income include household income, household composition, age, education, sex, region, fixed expenditures, and whether the household experienced recent income changes. The income elasticity appears to be smaller in the U.S. than in the Netherlands, while the effects of other socioeconomic factors are greater. On average, the resulting subjective income thresholds are above official poverty lines, but more so in the U.S. than in the Nerherlands. Whether thresholds based on answers to MIQs should be regarded as poverty lines remains open to question.     

A Micro-Econometric Analysis of Determinants of Unsustainable Consumption in The Netherlands

Recently, much attention has been given to the notion of `sustainable consumption'. Whereas environmental economics traditionally has focused environmental policy analysis on producers, this new notion broadens the perspective to include environmental policies aimed at directly influencing consumer decisions regarding buying, using, and recycling products. This could suggest policies that link not only to price incentives, but also and especially to persuasive instruments, such as education and information provision. These policies might take into account certain characteristics of households, such as lifestyle and family size. This article presents a first econometric analysis of consumption in the context of environmental sustainability. Relationships between different types of household expenditures and a range of household characteristics are assessed, based on a large micro data set of households for the Netherlands. Use is made of various demand models and econometric techniques to adequately address theoretical and technical issues involved. The article ends with a discussion of the implications of the results for environmental policy directed at stimulating sustainable consumption.     

医疗保险与消费:来自新型农村合作医疗的证据

本文利用农村引入新型农村合作医疗这一政策变化来研究医疗保险的获得对农村居民消费的影响。结果表明,新农合使得非医疗支出类的家庭消费增加了约5.6个百分点。这一正向作用随医疗保险保障水平的提高而增强,而且在没有医疗支出的家庭中仍然存在。同时,新农合对消费的正向影响在收入较低或健康状况较差的家庭中更强。这些结果都与医疗保险减少了预防性储蓄的假说相一致。另外本文发现,新农合的效果随农户在这个项目中的经历而变化。实际上只有在那些有村民获得保险补偿的村子,保险对消费的正向影响才显著,而且在这些村子中,新农合对新加入农户的消费的影响明显小于对参合一年以上农户的消费的影响。     

MEASURING MULTIDIMENSIONAL POVERTY: AN EMPIRICAL COMPARISON OF VARIOUS APPROACHES

This paper makes a systematic comparison of four approaches to multidimensional poverty analysis based respectively on the theory of fuzzy sets, information theory, efficiency analysis and axiomatic derivations of poverty indices. The database was the 1995 Israeli Census that provided information on the ownership of various durable goods. There appears to be a fair degree of agreement between the various multidimensional poverty indices concerning the identification of the poor households. The four approaches have also shown that poverty decreases with the schooling level of the head of the household, first decreases and then increases with his/her age and with the size of the household. Poverty is higher when the head of the household is single and lower when he/she is married, lowest when the head of the household is Jewish and highest when he/she is Muslim. Poverty is also higher among households whose head immigrated in recent years, does not work or lives in Jerusalem. These observations were made on the basis of logit regressions. This impact on poverty of many of the variables is not very different from the one that is observed when poverty measurement is based only on the income or the total expenditures of the households.     

Patrilocality and human capital accumulationEvidence from Central Asia1

Anthropologists estimate that 70 percent of human societies are patrilocal, meaning that adult sons reside with their parents, and that wives go to live with their husbands’ families upon marriage. Yet very little is known about how this widespread social norm influences intrahousehold resource allocation and, through this, economic development. This paper examines the effects of patrilocality on schooling and household educational expenditures in Tajikistan. To identify the causal effect of living in a three versus two generation household on these outcomes, exogenous variation in housing availability across communities is exploited. It is shown that the impacts of living in a three generation household are important for both school enrolment and for educational spending. The results suggest that one reason why patrilocal societies remain poorer than those with nuclear household norms is that three generation households make relatively few human capital investments in the youngest generation. Patrilocality, which probably evolved to solve coordination problems in agrarian societies, may thus be a cause rather than simply a correlate of low educational attainment in developing countries.