Investigating the Effectiveness of Demographic Variables on Household Spending Pattern with the Approach of Increasing Insurance Penetration  

Document Type : Original Article

Authors

Faculty Member of Economics and Political Science

Abstract

Undoubtedly, consumption is an important factor in the economy and household welfare, and increasing items of household consumption expenditures will lead to an increase in total consumption and household welfare. Insurance is one of the household consumption items, nowadays; it is inevitable not to have an insurance policy in the household. Insurers are trying to increase the influence of insurance on households, in other words, they are looking to increase sales of their products among households. The estimates of this article using the data of household expenditure income of the Statistics Center of Iran in 2009-2010 show that demographic features are effective in the household expenditure pattern. As the variable of residence, the number of people with household literacy, age, gender and employment conditions of the head of the household play a role in consumption.
The estimates of this article using the data of household expenditure income of the Statistics Center of Iran in 2009-2010 show that demographic features are effective in the household expenditure pattern. As the variable of residence, the number of people with household literacy, age, gender and employment conditions of the head of the household play a role in consumption.

Keywords

References

Banks, James, Richard Blundell, and Arthur Lewbel. 1997. “Quadratic Engel Curves and ConsumerDemand.” Review of Economics and Statistics, 79(4). PP 527–39.
Central Bank of Iran. Economic Time Series Database, available at https://tsd.cbi.ir/Display/Content.aspx
Banks, J., Blundell, R., and Lewbel, A. 1997. Quadratic Engel curves and consumerdemand. The Review of Economics and Statistics. 79(4). PP. 527–539.
Deaton, A 1997. “The analysis of household surveys: a microeconometric approach todevelopment policy”, Published for the World Bank, The Johns Hopkins University Press, Baltimore and London.
Deaton, A and Muellbauer. J. 1980. “ Economics and Consumer Behavior” , Cambridge University Press, Cambridge.
Deaton, A. 2010. “Price Indexes, Inequality, and the Measurement of World Poverty”,American Economic Review 100(1). PP. 5-34.
Engel, E. 1857. Die Produktions- und Consumptions Verh¨altnisse des K¨onigreichsSachsen.Zeitschrift des Statistischen Bureaus des K¨oniglichS¨achsischenMinisteriumsdesInneren, 8 and 9.Reprinted in the Appendix of Engel (1895).
Engel, J. and Kneip, A. 1996. Recent approaches to estimating Engel curves. Journalof Economics, 63. PP. 187–212.
Jorgenson, D. W. and Slesnick, D. T. 1987. “Aggregate Consumer Behavior and Household Equivalence Scales”, Journal of Business and Economic Statistics, 5. PP. 219-232.
Kang,E.l. and Chern, W.S. 2001. “Effects of model specification and demographic variables on food consumption: micro data evidence from Jiangsu,China” World Food and Agribusiness Symposium of the International Food and Agribusiness Management Association, Sydney, Australia.
Leser, C. 1963. “Forms of Engel Functions”, Econometrica 31(4). PP. 694-703.
Lewbel, A and Pendakur, K. 2006. “Equivalence scales”, Entry for The New Palgrave Dictionary of Economics, 2nd edition.
Lewbel, A and Pendakur, K. 2009. “Tricks with Hicks: The EASI demand system,” American Economic Review, 99(3). PP. 827–863.
Lewbel, A. 1989. “Household Equivalence Scales and Welfare Comparisons”, Journal of Public Economics, 39. PP. 377-391.
Lewbel, A. 1997. “Consumer Demand Systems and Household Equivalence Scales”, Handbook of Applied Econometrics, Volume II: Microeconomics, Pesaran, M.H. and Schmidt, P. eds., Oxford: Blackwell Publishers Ltd.
Paris, s.J. and Houthakker, H.S. 1955. “ The analysis of Family Budegts”, Cambridge University Press, Cambridge
Pendakur, K. 1999. “ Estimates and Tests of Base-Independent Equivalence Scales”, Jornal of Econometrics 88. PP. 1-40
Sigma. 2019. “Insurance world”Swiss Re Insurance , Swiss.
Rahimi. A. 2014. “ Household Welfare in Iran an approach from Economic Behavioural Economics” Da press, Iran.
Rahimi. A and H. Molana. 2014. "Relative cost of child rearing for Iranian households estimates of child equivalence scales for Iran". 2014. PP.1-34.
Rahimi.A and H. Molana. 2015. "Should all Iranian citizens receive the same subsidy rebate Estimates of Household Engel-curve-based Equivalence Scales for Iran" , Money and Economy 2014. Vol. 9. PP. 1-29.
Rahimi. A. 2016. “ Economics and Business Insurance in the Global Arena”, Data analysis institute and Hormazd press, Iran.
The Road traffic act. 1988. UK.
Working, H. 1943. “Statistical laws of family expenditures,” Journal of the American StatisticalAssociation, 38. PP. 43–56.

Files

Share

How to cite

Statistics