A Cross-sectional Household Analysis of Household Consumption Patterns: An Indirect Approach to Identify the Possible Factors of Personal Bankruptcy

Abstract

Although the standard of living has consistently improved, personal bankruptcy remains an uncommon issue in Malaysia. This paper investigates the relationship between consumption patterns and income of Malaysians by examining income elasticity using the Engel curve. Data were collected from the Household Expenditure Surveys of 2004, 2009, and 2014 and analysed using ordinary least square regression and the Working-Leser model. The results showed that out of 12 expenditure components, three were found to be necessity goods: food and non-alcoholic beverages, clothing and footwear, and housing and utility. It was found that households led by youths spent more on luxury goods compared to those led by heads aged 40 and above. Males, Bumiputeras, and households living in urban areas spent more on luxury goods. Tobacco, alcoholic beverages, hotels, private education, and private healthcare were considered as luxury goods for Malaysian households. This study suggests that the public, especially the younger generation, should be exposed more to the knowledge and awareness of debts, bankruptcy and lifestyles.

Community Empowerment as an Effort for Handling Food Consumption Patterns in Malang Raya

“…The hypothesis tested in this study is that the level of energy consumption of farmer households, in the three types of agroecology, is influenced by farming experience (X1), knowledge of nutrition (X2), food expenditure (X3), household income (X4), formal education (X5), Farmer's Age (X6), Diversification of Food Consumption (X7), Frequency of Eating (8) and Number of Families (X9). Data processing using SPSS Version 15, using a significant test level of 5% and 1%.…”

Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia

“…According to Mien & Said (2018), households change public education to more expensive private education and are willing to increase the number of expenses to get better quality goods and services. Households change their spending on goods and services to better quality goods to achieve the desired standard of living, corresponding to income increases.…”

“…Household spending is a household's financial transaction to buy goods and services to meet its needs and wants (OECD, 2013;DOSM, 2020). Shift in the structure of household expenditures in Malaysia can be observed based on income elasticities values of goods and services concurrently with the fluctuation in prices and incomes (Mien & Said, 2018;Yusof & Duasa, 2010b).…”

“…The idea is that cost of living that burden B40 households is due to copying middle and high income lifestyle. According to Mien & Said (2018), household spending at this point is not only to meet needs and wants but also represents certain values. People are willing to pay more for better services at home.…”

“…Wahab et al (2018) found that changes in family living standards had increased the cost of living, while Ismail (2021) highlights the spending pattern of B40, M40, and T20 households on basic needs expenditures that rise faster than income. Mien & Said (2018) observed that excessive household spending has contributed to increasing bankruptcy rates. Based on studies conducted in Malaysia, researcher found some gap to be filled.…”