IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0263330.html
   My bibliography  Save this article

Crowding Out Effects of Alcohol Consumption Expenditure on Household Resource Allocation in Malawi

Author

Listed:
  • Aubrey Jolex
  • Ben Kaluwa

Abstract

The study used Quasi maximum likelihood estimation (QMLE) on a nationally representative household level data set to estimate the effect of alcohol consumption expenditure on a set of expenditure proportions of other commodities. The results indicate that, the low-income, including the rural population, spent proportionately more on alcohol than their well-off and urban counterparts. Furthermore, the consumption of alcohol crowded-out expenditures on consumer non-durable (food and beverages), durable (housing) and essential services (education). The crowding out of these expenditures clearly has negative impacts on the wellbeing of individuals within households and communities through misallocated household resources. The strong, unequivocal message coming out of the results obtained in this study is that certainly for poorer countries alcohol consumption is inimical to household poverty reduction.

Suggested Citation

  • Aubrey Jolex & Ben Kaluwa, 2022. "Crowding Out Effects of Alcohol Consumption Expenditure on Household Resource Allocation in Malawi," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-12, February.
    • Handle: RePEc:plo:pone00:0263330
    DOI: 10.1371/journal.pone.0263330
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0263330
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0263330&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0263330?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jaya Jumrani & P. S. Birthal, 2017. "Does consumption of tobacco and alcohol affect household food security? Evidence from rural India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 255-279, April.
    2. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," The World Bank Research Observer, World Bank, vol. 10(1), pages 1-19, February.
    3. John, Rijo M., 2008. "Crowding out effect of tobacco expenditure and its implications on household resource allocation in India," Social Science & Medicine, Elsevier, vol. 66(6), pages 1356-1367, March.
    4. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Drall, Anviksha & Mandal, Sabuj Kumar, 2021. "Investigating the existence of entry barriers in rural non-farm sector (RNFS) employment in India: A theoretical modelling and an empirical analysis," World Development, Elsevier, vol. 141(C).
    2. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    3. Subramanian, Arjunan & Kumar, Parmod, 2017. "The impact of price policy on demand for alcohol in rural India," Social Science & Medicine, Elsevier, vol. 191(C), pages 176-185.
    4. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    5. Adem Aksoy & Abdulbaki Bilgic & Steven T. Yen & Faruk Urak, 2019. "Determinants of Household Alcohol and Tobacco Expenditures in Turkey," Journal of Family and Economic Issues, Springer, vol. 40(4), pages 609-622, December.
    6. Wu, Daphne C. & Shannon, Geordan & Reynales-Shigematsu, Luz Myriam & Saenz de Miera, Belen & Llorente, Blanca & Jha, Prabhat, 2021. "Implications of household tobacco and alcohol use on child health and women's welfare in six low and middle-income countries: An analysis from a gender perspective," Social Science & Medicine, Elsevier, vol. 281(C).
    7. Nyagwachi, Abel Otwori & Chelwa, Grieve & van Walbeek, Corné, 2020. "The effect of tobacco- and alcohol-control policies on household spending patterns in Kenya: An approach using matched difference in differences," Social Science & Medicine, Elsevier, vol. 256(C).
    8. Jinsuk Yang & Qing Hao & Mahmut Yaşar, 2023. "Institutional investors and cross‐border mergers and acquisitions: The 2000–2018 period," International Review of Finance, International Review of Finance Ltd., vol. 23(3), pages 553-583, September.
    9. Jaya Jumrani & P. S. Birthal, 2017. "Does consumption of tobacco and alcohol affect household food security? Evidence from rural India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 255-279, April.
    10. Alexander Klein & Karl Gunnar Persson & Paul Sharp, 2023. "Populism and the first wave of globalization: Evidence from the 1892 US presidential election," Rivista di storia economica, Società editrice il Mulino, issue 2, pages 163-202.
    11. Lamia Kandil & Hélène Perivier, 2017. "La division sexuée du travail dans les couples selon le statut marital en France - une étude à partir des enquêtes emploi du temps de 1985-1986, 1998-1999, et 2009-2010," Documents de Travail de l'OFCE 2017-03, Observatoire Francais des Conjonctures Economiques (OFCE).
    12. Alperovych, Yan & Hübner, Georges & Lobet, Fabrice, 2015. "How does governmental versus private venture capital backing affect a firm's efficiency? Evidence from Belgium," Journal of Business Venturing, Elsevier, vol. 30(4), pages 508-525.
    13. Giuliani, Elisa & Martinelli, Arianna & Rabellotti, Roberta, 2016. "Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU Inventors," World Development, Elsevier, vol. 77(C), pages 192-205.
    14. Matthias Schmid & Florian Wickler & Kelly O Maloney & Richard Mitchell & Nora Fenske & Andreas Mayr, 2013. "Boosted Beta Regression," PLOS ONE, Public Library of Science, vol. 8(4), pages 1-15, April.
    15. Sevias Guvuriro & Frederik Booysen, 2021. "Family‐type public goods and intra‐household decision‐making by co‐resident South African couples," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1629-1647, August.
    16. Nguimkeu, Pierre & Zeufack, Albert, 2024. "Manufacturing in structural change in Africa," World Development, Elsevier, vol. 177(C).
    17. Christophe Hurlin & Jérémy Leymarie & Antoine Patin, 2018. "Loss functions for LGD model comparison," Working Papers halshs-01516147, HAL.
    18. Blackburn, McKinley L. & Vermilyea, Todd, 2012. "The prevalence and impact of misstated incomes on mortgage loan applications," Journal of Housing Economics, Elsevier, vol. 21(2), pages 151-168.
    19. de Rassenfosse, Gaétan, 2013. "Do firms face a trade-off between the quantity and the quality of their inventions?," Research Policy, Elsevier, vol. 42(5), pages 1072-1079.
    20. Mazen Hassan & Sarah Mansour & Stefan Voigt & May Gadallah, 2022. "When Syria was in Egypt’s land: Egyptians cooperate with Syrians, but less with each other," Public Choice, Springer, vol. 191(3), pages 337-362, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0263330. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.