Kos sara hidup tinggi di Malaysia: Pertumbuhan pendapatan isi rumah yang perlahan atau taraf hidup yang meningkat?

Translated title of the contribution: The rising cost of living in Malaysia: A slow hh income growth or increasing standard of living

Research output: Contribution to journalArticle

Abstract

This paper looks at the causes of increasing cost of living by studying two (2) main factors; firstly, the slow growth in income as compared to inflation, and secondly the unproportional increase in standard of living as compared to income. For the first factor, a time series regression model was constructred using the data from Household Income Survey report (various years) to compare the fluctutation in income against the inflation rate year-on-year. For the second factor, we studied the expenditure elasticity of income for the household. A log-log linear regression model was developed taking into consideration the three (3) main groups of goods that household buys: Food, Transportation and Housing. We have studied the elasticities across income strata (B40, M40, T20) and location (Rural vs Urban) to observe the changes in elasticity with respect to those variables. The result of this study points that income growth has indeed surpasses inflation rate from year to year, however the standard of living is increasing at a comparatively fast rate, as evidenced by high expenditure elasticities for several types of goods for B40s and M40s. This suggests that the standard of living, or living styles are the dominant factor that contributes to the problems of increasing cost of living.

Original languageMalay
Pages (from-to)125-139
Number of pages15
JournalJurnal Ekonomi Malaysia
Volume52
Issue number1
Publication statusPublished - 1 Jan 2018

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Factors
Income
Cost of living
Standard of living
Income growth
Malaysia
Elasticity
Expenditure
Inflation rate
Household
Income elasticity
Household income
Food
Linear regression model
Inflation
Regression model
Rural-urban

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

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title = "Kos sara hidup tinggi di Malaysia: Pertumbuhan pendapatan isi rumah yang perlahan atau taraf hidup yang meningkat?",
abstract = "This paper looks at the causes of increasing cost of living by studying two (2) main factors; firstly, the slow growth in income as compared to inflation, and secondly the unproportional increase in standard of living as compared to income. For the first factor, a time series regression model was constructred using the data from Household Income Survey report (various years) to compare the fluctutation in income against the inflation rate year-on-year. For the second factor, we studied the expenditure elasticity of income for the household. A log-log linear regression model was developed taking into consideration the three (3) main groups of goods that household buys: Food, Transportation and Housing. We have studied the elasticities across income strata (B40, M40, T20) and location (Rural vs Urban) to observe the changes in elasticity with respect to those variables. The result of this study points that income growth has indeed surpasses inflation rate from year to year, however the standard of living is increasing at a comparatively fast rate, as evidenced by high expenditure elasticities for several types of goods for B40s and M40s. This suggests that the standard of living, or living styles are the dominant factor that contributes to the problems of increasing cost of living.",
keywords = "Elasticity, Expenditure, Income, Inflation, Standard of living",
author = "Wahab, {Mohd Aqmin Abdul} and Shahiri, {Hazrul Izuan} and Mustazar Mansur and Zaidi, {Mohd Azlan Shah}",
year = "2018",
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day = "1",
language = "Malay",
volume = "52",
pages = "125--139",
journal = "Jurnal Ekonomi Malaysia",
issn = "0126-1962",
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AU - Shahiri, Hazrul Izuan

AU - Mansur, Mustazar

AU - Zaidi, Mohd Azlan Shah

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N2 - This paper looks at the causes of increasing cost of living by studying two (2) main factors; firstly, the slow growth in income as compared to inflation, and secondly the unproportional increase in standard of living as compared to income. For the first factor, a time series regression model was constructred using the data from Household Income Survey report (various years) to compare the fluctutation in income against the inflation rate year-on-year. For the second factor, we studied the expenditure elasticity of income for the household. A log-log linear regression model was developed taking into consideration the three (3) main groups of goods that household buys: Food, Transportation and Housing. We have studied the elasticities across income strata (B40, M40, T20) and location (Rural vs Urban) to observe the changes in elasticity with respect to those variables. The result of this study points that income growth has indeed surpasses inflation rate from year to year, however the standard of living is increasing at a comparatively fast rate, as evidenced by high expenditure elasticities for several types of goods for B40s and M40s. This suggests that the standard of living, or living styles are the dominant factor that contributes to the problems of increasing cost of living.

AB - This paper looks at the causes of increasing cost of living by studying two (2) main factors; firstly, the slow growth in income as compared to inflation, and secondly the unproportional increase in standard of living as compared to income. For the first factor, a time series regression model was constructred using the data from Household Income Survey report (various years) to compare the fluctutation in income against the inflation rate year-on-year. For the second factor, we studied the expenditure elasticity of income for the household. A log-log linear regression model was developed taking into consideration the three (3) main groups of goods that household buys: Food, Transportation and Housing. We have studied the elasticities across income strata (B40, M40, T20) and location (Rural vs Urban) to observe the changes in elasticity with respect to those variables. The result of this study points that income growth has indeed surpasses inflation rate from year to year, however the standard of living is increasing at a comparatively fast rate, as evidenced by high expenditure elasticities for several types of goods for B40s and M40s. This suggests that the standard of living, or living styles are the dominant factor that contributes to the problems of increasing cost of living.

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KW - Standard of living

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