Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia

The cost of living has become an economic problem for everyone. Studies on the cost of living often connect income and inflation as the cost of living factors. This study aims to look from a different perspective by analysing the influence of lifestyle on the household cost of living in Malaysia. Li...

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Published in:Malaysian Journal of Consumer and Family Economics
Main Author: Ismail N.A.; Daud L.; Mohd S.; Samat N.; Ridzuan A.R.
Format: Article
Language:English
Published: Malaysian Consumer and Family Economics Association 2023
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85178896369&doi=10.60016%2fmajcafe.v31.15&partnerID=40&md5=690fcd5d7b923f8b39e3cd66abf98a56
id 2-s2.0-85178896369
spelling 2-s2.0-85178896369
Ismail N.A.; Daud L.; Mohd S.; Samat N.; Ridzuan A.R.
Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
2023
Malaysian Journal of Consumer and Family Economics
31

10.60016/majcafe.v31.15
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85178896369&doi=10.60016%2fmajcafe.v31.15&partnerID=40&md5=690fcd5d7b923f8b39e3cd66abf98a56
The cost of living has become an economic problem for everyone. Studies on the cost of living often connect income and inflation as the cost of living factors. This study aims to look from a different perspective by analysing the influence of lifestyle on the household cost of living in Malaysia. Lifestyle changes are one effect that arises from changes in household income and living standards. Households' arrangement of upgrading basic needs by consuming more expensive and better-quality goods is defined as lifestyle and it is determined using household income elasticities. This study uses the Malaysian Household Expenditure Survey (HES) 2016 data. Engel's Curve theory is applied to explain the relationship of household expenditure across income groups. Using the OLS regression model, income and expenditure elasticities are estimated. This study discovered that households had an increased rate of expenditure on basic needs more than income increases and we conclude that lifestyle affects the cost of living. Transportation expenditures represent the most significant lifestyle change influencing the cost of living among B40 households. Based on the findings, the researchers suggest that the government encourage a sustainable lifestyle based on specific expenditure groups to control household living costs. © 2018 Malaysian Consumer and Family Economics Association (MACFEA).
Malaysian Consumer and Family Economics Association
15112802
English
Article
All Open Access; Bronze Open Access
author Ismail N.A.; Daud L.; Mohd S.; Samat N.; Ridzuan A.R.
spellingShingle Ismail N.A.; Daud L.; Mohd S.; Samat N.; Ridzuan A.R.
Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
author_facet Ismail N.A.; Daud L.; Mohd S.; Samat N.; Ridzuan A.R.
author_sort Ismail N.A.; Daud L.; Mohd S.; Samat N.; Ridzuan A.R.
title Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
title_short Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
title_full Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
title_fullStr Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
title_full_unstemmed Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
title_sort Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia
publishDate 2023
container_title Malaysian Journal of Consumer and Family Economics
container_volume 31
container_issue
doi_str_mv 10.60016/majcafe.v31.15
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85178896369&doi=10.60016%2fmajcafe.v31.15&partnerID=40&md5=690fcd5d7b923f8b39e3cd66abf98a56
description The cost of living has become an economic problem for everyone. Studies on the cost of living often connect income and inflation as the cost of living factors. This study aims to look from a different perspective by analysing the influence of lifestyle on the household cost of living in Malaysia. Lifestyle changes are one effect that arises from changes in household income and living standards. Households' arrangement of upgrading basic needs by consuming more expensive and better-quality goods is defined as lifestyle and it is determined using household income elasticities. This study uses the Malaysian Household Expenditure Survey (HES) 2016 data. Engel's Curve theory is applied to explain the relationship of household expenditure across income groups. Using the OLS regression model, income and expenditure elasticities are estimated. This study discovered that households had an increased rate of expenditure on basic needs more than income increases and we conclude that lifestyle affects the cost of living. Transportation expenditures represent the most significant lifestyle change influencing the cost of living among B40 households. Based on the findings, the researchers suggest that the government encourage a sustainable lifestyle based on specific expenditure groups to control household living costs. © 2018 Malaysian Consumer and Family Economics Association (MACFEA).
publisher Malaysian Consumer and Family Economics Association
issn 15112802
language English
format Article
accesstype All Open Access; Bronze Open Access
record_format scopus
collection Scopus
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