Consumption patterns in Malaysia using generalized linear model

Ros Idayuwati Alaudin, Noriszura Ismail, Zaidi Isa, Nuraidawani Mat Nasir

Research output: Contribution to journalArticle

Abstract

Household expenditure is important as an indicator to financial stability of household in a country. According to economic theory, well-being is measured better by expenditure rather than by income. In general, there are various factors affecting household expenditure patterns including income, demographic and socioeconomic characteristics of each household. Therefore, this study investigates the relationship between the demographic and socioeconomic characteristics with household expenditure using Malaysian Household Expenditure Survey (HES) 2009/10 data which is based on 6480 sample of households and contains information on demographic and socioeconomic status of each household. Furthermore, we also examine household expenditure patterns according to expenditure classes which are classified into three groups; low, medium and high class expenditure. In addition, we explore the allocation of consumption expenditure of preretirement household (working household) and postretirement household (retirees)across several expenditure categories. Regression analysis with lognormal distribution and Generalized Linear Model (GLM) with Inverse Gaussian and Gamma distributions are performed to discern the effects of the demographic and socioeconomic characteristics on household expenditure patterns. The results show that GLM with Gamma distribution model is the best model followed by GLM with Inverse Gaussian distribution and multiple linear regression with lognormal distribution.

Original languageEnglish
Pages (from-to)2760-2768
Number of pages9
JournalSocial Sciences (Pakistan)
Volume11
Issue number11
Publication statusPublished - 2016

Fingerprint

linear model
Malaysia
expenditures
income
retiree
economic theory
social status
regression analysis
well-being
regression

Keywords

  • Consumption
  • Expenditure
  • Gamma
  • GLM
  • Inverse gaussian

ASJC Scopus subject areas

  • Social Sciences(all)

Cite this

Consumption patterns in Malaysia using generalized linear model. / Alaudin, Ros Idayuwati; Ismail, Noriszura; Isa, Zaidi; Nasir, Nuraidawani Mat.

In: Social Sciences (Pakistan), Vol. 11, No. 11, 2016, p. 2760-2768.

Research output: Contribution to journalArticle

Alaudin, Ros Idayuwati ; Ismail, Noriszura ; Isa, Zaidi ; Nasir, Nuraidawani Mat. / Consumption patterns in Malaysia using generalized linear model. In: Social Sciences (Pakistan). 2016 ; Vol. 11, No. 11. pp. 2760-2768.
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