Abstract
The seventh chapter introduces the concept of two-stage budgeting in the household decision making. It examines the diverse characteristics of seven countries with different cultures, population size, age distribution and levels of income per head of population. It then looks at similarities and differences in household allocation for different major groups of commodities. It reviews household allocations in the seven countries to bare essential such as food, housing, related domestic fuel and power. Other expenditure categories discussed includes alcoholic beverages and tobacco, household operation, furnishings and equipment, clothing and footwear, transport, medical and health services, education and recreation. It also provides an organising framework to look at household allocation to different types of commodities.
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Notes
- 1.
For instance, Quirk, James P. 1986. Intermediate Microeconomics. Chicago: Science Research Associates, Inc. For brief and basic perspectives on consumer behaviour in economics see Chapter 2 – Section 2.2.
- 2.
Although the two-stage budgeting concept involves allocations being made to main commodities groups, and then to items within the group based on market prices, it is apparent that relative prices for say domestic appliances in different countries may influence the proportion spent on that group of commodities. See previous reference to price theory.
- 3.
There is also a measurement question in the case of the United States, as it might include transport expenses incurred for holiday purposes usually included in recreation expenses in other surveys.
- 4.
A concise review of the issues involved in health care financing is contained in Martins (2004) Health Financing – An International Perspective in “Health Care Financial Management” edited by Courtney, M and D Briggs, Sydney: Elsevier Mosby.
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Martins, J.M., Yusuf, F., Swanson, D.A. (2011). Consumer Allocation Patterns. In: Consumer Demographics and Behaviour. The Springer Series on Demographic Methods and Population Analysis, vol 30. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1855-5_7
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DOI: https://doi.org/10.1007/978-94-007-1855-5_7
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