[Blueboard] Dissertation Defense of Ms. Maria Luisa G. Valera

Department of Economics [LS] economics.soss at ateneo.edu
Tue Oct 27 10:33:58 PHT 2015

The Department of Economics

School of Social Sciences

Ateneo de Manila University

Cordially invites you

To a dissertation’s defense

“The Effect of Remittances on Food Consumption Basket and Health Care
Expenditure in the Philippines”

by Ms. Maria Luisa G. Valera

on November 9, 2015 (Monday)

at 10:00 – 12:00 nn

Economics Department, Conference Room

Panel of examiners:

Alvin P. Ang, Ph.D.

Noel P. de Guzman, Ph.D.

Victor S. Venida, Ph.D.

Jose V. Camacho, Ph.D. (UP Los Baños)


Fernando T. Aldaba, Ph.D.


This study investigates the influence of remittances on budget share of
food consumption basket and health care expenditure, as well as its effect
on the likelihood of availing health insurance.  The three-stage Tobit
model and two-stage Logit model were employed using 2012 Family Income and
Expenditure Survey (FIES) dataset.

The  overall  findings  show  that  households  receiving  remittances
are  better-off  in acquiring food baskets that are rich in micronutrients
and macronutrients especially found in cereals and animal-sourced food;
have lower budget share of health care expenditure; and have greater chance
of availing health insurance. This can all be attributed to the higher per
capita expenditure found in remittance-recipient households compared to
non-remittance recipients.  The result is in conformity with the
theoretical expectation in the empirical literature concerning the Engel’s
law and the traditional consumption models that include life cycle and
permanent income theories of consumption.

Based on the findings, the fraction of income spent on food decreases as
income rises but increases on health care expenditure. Since food is a
necessity good that make up a smaller share of budget and health care is a
luxury good or service that takes up a larger share of the budget for
better-off households, the remittance-recipients.

The study also suggests that remittance is sporadic or variable relative to
other income that is considered as transitory, intended for investment
purposes such as on health care and not compensatory that are intended to
smooth consumption such as spending on food in general.
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