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Jurnal Ekonomi Malaysia

52 (3) 2018 231 – 246

A Cross-sectional Household Analysis of Household Consumption Patterns: An Indirect Approach to Identify the Possible Factors of Personal Bankruptcy
Analisis Keratan Rentas Corak Penggunaan Isi Rumah: Satu Pendekatan Tidak Langsung untuk Mengenalpasti Faktor Kebankrapan Individu

Faculty of Economics and Management
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

siawmien@live.com

Faculty of Economics and Management
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

rusmawatisaid@gmail.com

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.

Keywords

Consumption pattern; Engel curve; income elasticity; personal bankruptcy

Author’s Acknowledgement

We would like to thank the Department of Statistics and UPM library for providing and assisting the data retrieval. Furthermore, we would also wish to extend our gratitude to all the reviewers for their valuable comments that greatly improved the manuscript.

http://dx.doi.org/10.17576/JEM-2018-5203-18
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Mien, , & Said, (2018). A Cross-sectional Household Analysis of Household Consumption Patterns: An Indirect Approach to Identify the Possible Factors of Personal Bankruptcy. Jurnal Ekonomi Malaysia, 52(3), 231–246. http://dx.doi.org/10.17576/JEM-2018-5203-18

@article{mien2018crosssectional,
  title={A Cross-sectional Household Analysis of Household Consumption Patterns: An Indirect Approach to Identify the Possible Factors of Personal Bankruptcy},
  author={Mien, Toh Siaw and Said, Rusmawati},
  journal={Jurnal Ekonomi Malaysia},
  volume={52},
  number={3},
  pages={231—246},
 

year={2018},
}

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