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Household expenditure patterns and resource pooling: evidence of changes in post-apartheid South Africa

Author

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  • Pushkar Maitra

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  • Ranjan Ray

    ()

Abstract

The primary aim of this paper is to examine whether resources accruing to different members of the household and from different sources have differential impacts on household expenditure patterns. The issue is of considerable policy interest for, if the identity of the income recipient does matter in the household’s expenditure decisions, then it indicates the usefulness of targeting income assistance at particular members of the household. The South African evidence is generally supportive of the hypothesis of resource pooling by the income earners in their spending decisions on food, clothing and energy. The results of this paper have been placed in the wider context of social, political and economic developments following the end of apartheid that have caused significant changes in the nature of resource inflow and in the balance of power in decision making within the South African household. The results are indicative of improvements in the standard of living of the majority of South Africans following the end of apartheid. Copyright Springer Science+Business Media, LLC 2006

Suggested Citation

  • Pushkar Maitra & Ranjan Ray, 2006. "Household expenditure patterns and resource pooling: evidence of changes in post-apartheid South Africa," Review of Economics of the Household, Springer, vol. 4(4), pages 325-347, December.
  • Handle: RePEc:kap:reveho:v:4:y:2006:i:4:p:325-347
    DOI: 10.1007/s11150-006-0011-6
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    References listed on IDEAS

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    1. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 1-25, June.
    2. Morné Oosthuizen & Haroon Bhorat, 2005. "The Post-Apartheid South African Labour Market," Working Papers 05093, University of Cape Town, Development Policy Research Unit.
    3. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    4. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2006. "Collective and Unitary Models: A Clarification," Review of Economics of the Household, Springer, vol. 4(1), pages 5-14, March.
    5. Marianne Bertrand & Sendhil Mullainathan & Douglas Miller, 2003. "Public Policy and Extended Families: Evidence from Pensions in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 27-50, June.
    6. Eric V. Edmonds & Kristin Mammen & Douglas L. Miller, 2005. "Rearranging the Family?: Income Support and Elderly Living Arrangements in a Low-Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    7. Donna Dosman & Wiktor Adamowicz, 2006. "Combining Stated and Revealed Preference Data to Construct an Empirical Examination of Intrahousehold Bargaining," Review of Economics of the Household, Springer, vol. 4(1), pages 15-34, March.
    8. Grosh, M.E. & Glewwe, P., 1995. "A Guide to Living Standards Measurement Study Surveys and their Data Sets," Papers 120, World Bank - Living Standards Measurement.
    9. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    10. Maitra, Pushkar & Ray, Ranjan, 2003. "The effect of transfers on household expenditure patterns and poverty in South Africa," Journal of Development Economics, Elsevier, vol. 71(1), pages 23-49, June.
    11. Esther Duflo & Christopher Udry, 2003. "Intrahousehold Resource Allocation in Côte D'ivoire: Social Norms, Separate Accounts and Consumption Choices," Working Papers 857, Economic Growth Center, Yale University.
    12. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
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    Citations

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    Cited by:

    1. Maitra, Pushkar, 2004. "Parental bargaining, health inputs and child mortality in India," Journal of Health Economics, Elsevier, vol. 23(2), pages 259-291, March.
    2. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany.
    3. Xiaohui Hou, 2016. "How Does Women’s Decision-Making Power Affect Budget Share, Nutrition and Education in Pakistan?," Journal of Family and Economic Issues, Springer, vol. 37(1), pages 115-131, March.
    4. Hou, Xiaohui, 2011. "Women's decision making power and human development : evidence from Pakistan," Policy Research Working Paper Series 5830, The World Bank.
    5. Hamid Beladi & Saibal Kar, 2014. "Unemployment Benefits and Entrepreneurship," The Japanese Economic Review, Japanese Economic Association, vol. 65(1), pages 122-128, March.

    More about this item

    Keywords

    Household resources; Expenditure shares; Resource pooling; South Africa; I32; I38; D12; C32;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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