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Philippines 2007 National Transfer Accounts: Financing Consumption and Lifecycle Deficit by Income Group

Author

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  • Salas, J.M. Ian S.
  • Abrigo, Michael Ralph M.
  • Racelis, Rachel H.

Abstract

The NTA flow accounts for the Philippines for the year 2007 include not only national level estimates but also estimates by income group. Three income groups are defined, referred to as income terciles. This paper examines the financing of consumption by income group. One source of financing is own labor income. But for age groups whose labor income is not sufficient to cover their consumption, mainly the young and elderly, the difference or the lifecycle deficit is financed by resources reallocated between age groups. The income groups differ in the manner the lifecycle deficits are financed.Some key findings include: (1) for the young dependent age group deficit is financed by public alongside private transfers for the bottom tercile while it is almost entirely private transfers for the top tercile; (2) for the young elderly (under 79 years old) financing of deficit is by asset reallocation and a small proportion by public transfers for the bottom and middle terciles, and by asset reallocation and private transfers for the top tercile; and (3) for the older elderly (age 79 or older) deficit is financed by public transfers (small proportion), private transfers, and asset reallocation for the bottom and middle terciles, and by private transfers and asset reallocation for the top tercile.

Suggested Citation

  • Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Philippines 2007 National Transfer Accounts: Financing Consumption and Lifecycle Deficit by Income Group," Discussion Papers DP 2012-33, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2012-33
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    References listed on IDEAS

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    1. Ronald Lee & Sang-Hyop Lee & Andrew Mason, 2006. "Charting the Economic Life Cycle," NBER Working Papers 12379, National Bureau of Economic Research, Inc.
    2. Andrew Mason & Ronald Lee & An-Chi Tung & Mun-Sim Lai & Tim Miller, 2009. "Population Aging and Intergenerational Transfers: Introducing Age into National Accounts," NBER Chapters, in: Developments in the Economics of Aging, pages 89-122, National Bureau of Economic Research, Inc.
    3. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Philippines 2007 National Transfer Accounts: Consumption, Income, and Intergenerational Reallocation of Resources," Discussion Papers DP 2012-29, Philippine Institute for Development Studies.
    4. Salas, J.M. Ian S. & Racelis, Rachel H., 2008. "Consumption, Income, and Intergenerational Reallocation of Resources: Application of NTA in the Philippines, 1999," Discussion Papers DP 2008-12, Philippine Institute for Development Studies.
    5. Ronald Lee & Andrew Mason (ed.), 2011. "Population Aging and the Generational Economy," Books, Edward Elgar Publishing, number 13816.
    6. Rachel H. Racelis & J.M Ian S. Salas, 2007. "Measuring Economic Lifecycle and Flows across Population Age Groups : Data and Methods in the Application of the NTA in the Philippines," Development Economics Working Papers 22682, East Asian Bureau of Economic Research.
    7. Salas, J.M. Ian S. & Racelis, Rachel H., 2008. "Have Lifecycle Consumption and Income Patterns in the Philippines Changed between 1994 and 2002?," Discussion Papers DP 2008-11, Philippine Institute for Development Studies.
    8. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Philippines 2007 National Transfer Accounts: Consumption, Income, and Intergenerational Reallocation of Resources - Revised Estimates," Discussion Papers DP 2012-35, Philippine Institute for Development Studies.
    9. Rachel H. Racelis & J. M. Ian Salas, 2011. "Changes in patterns of Philippine lifecycle consumption and labor income between 1994 and 2002," Chapters, in: Ronald Lee & Andrew Mason (ed.), Population Aging and the Generational Economy, chapter 18, Edward Elgar Publishing.
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    Cited by:

    1. Herrin, Alejandro N. & Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2015. "Philippines 2011 National Transfer Accounts Estimates of Consumption and Labor Income Age Profiles: Discussions on the 1991-2011 Age Profile Change and Implications on Economic Gains from the First De," Discussion Papers DP 2015-45, Philippine Institute for Development Studies.
    2. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Philippines 2007 National Transfer Accounts: Consumption, Income, and Intergenerational Reallocation of Resources - Revised Estimates," Discussion Papers DP 2012-35, Philippine Institute for Development Studies.
    3. Racelis, Rachel H. & Salas, J.M. Ian S. & Herrin, Alejandro N. & Abrigo, Michael R.M., 2016. "Economic Gain, Age Structure Transition, and Population Groups in the Philippines," Research Paper Series DP 2016-32, Philippine Institute for Development Studies.
    4. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Philippines 2007 National Transfer Accounts: Consumption, Labor Income, and Lifecycle Deficit by Income Group," Discussion Papers DP 2012-32, Philippine Institute for Development Studies.
    5. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Implications of Philippine Trends in Education Financing and Projected Change in School-age Population on Education Expenditures by Income Group: Using National Transfer Accounts Results," Discussion Papers DP 2012-34, Philippine Institute for Development Studies.
    6. Herrin, Alejandro N. & Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2016. "Economic Gain, Age Structure Transition, and Population Groups in the Philippines," Discussion Papers DP 2016-32, Philippine Institute for Development Studies.
    7. Racelis, Rachel H. & Abrigo, Michael Ralph M. & Salas, J.M. Ian S. & Herrin, Alejandro N., 2016. "Consumption, Labor Income, and Lifecycle Deficit by Urban-Rural Residence and by Income Group: Philippines NTA 1991, 1999, and 2011," Research Paper Series DP 2016-31, Philippine Institute for Development Studies.
    8. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Filipino Elderly Living Arrangements, Work Activity, and Labor Income as Old-age Support," Discussion Papers DP 2012-31, Philippine Institute for Development Studies.
    9. Racelis, Rachel H. & Abrigo, Michael Ralph M. & Salas, J.M. Ian S. & Herrin, Alejandro N., 2015. "Philippines 2011 National Transfer Accounts Estimates of Consumption and Labor Income Age Profiles: Discussions on the 1991-2011 Age Profile Change and Implications on Economic Gains from the First De," Research Paper Series DP 2015-45, Philippine Institute for Development Studies.
    10. Herrin, Alejandro N. & Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2016. "Consumption, Labor Income, and Lifecycle Deficit by Urban-Rural Residence and by Income Group: Philippines NTA 1991, 1999, and 2011," Discussion Papers DP 2016-31, Philippine Institute for Development Studies.
    11. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Implications of Projected Philippine Population Growth, Age Structure Change, and Aging: Using National Transfer Accounts Results," Discussion Papers DP 2012-30, Philippine Institute for Development Studies.
    12. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2014. "Comparing the 1999 and 2007 Philippine NTA Estimates and Examining the Effects of a Definitional Change of Overseas Workers` Remittances," Discussion Papers DP 2014-24, Philippine Institute for Development Studies.

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