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Analysis of Household Consumption Behavior and Indebted Self-Selection Effects: Case Study of Thailand
Joint Authors
Sriboonchitta, Songsak
Liu, Jianxu
Sirikanchanarak, Duangthip
Xie, Jiachun
Source
Mathematical Problems in Engineering
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-04-17
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
Copula is deemed to be a good approach for relaxing bivariate or multivariate distributions in econometric models.
This paper combines static and dynamic copula functions with endogenous switching to study self-selection effects and interdependence between error terms.
This technique, copula-based models, is applied to analyze household consumption behavior and indebted self-selection effects in Thailand.
The independent, Gaussian, Frank, Clayton, Gumbel, and Joe copula functions and the relatively rotated copula functions were employed in the empirical work.
The best model was selected by the information criterion, AIC.
We separated the households into four groups, indebted households, debt-free households, households with housing/land loans, and households without housing/land loans, which favors the examination of the treatment effects of indebted households or households with housing debts.
The main results indicate that dynamic copula-based models offer better performance than others, such as classical endogenous switching models or all static copula-based models.
Also, the I–I and the G–G models underestimate the treatment effects relative to the best models.
Additionally, importantly, the traditional normal bivariate distribution or the static copula function could characterize the relationship as regards errors between household debt choice and household consumption and can lead to very misleading implications about the treatment effects.
American Psychological Association (APA)
Liu, Jianxu& Sirikanchanarak, Duangthip& Sriboonchitta, Songsak& Xie, Jiachun. 2018. Analysis of Household Consumption Behavior and Indebted Self-Selection Effects: Case Study of Thailand. Mathematical Problems in Engineering،Vol. 2018, no. 2018, pp.1-12.
https://search.emarefa.net/detail/BIM-1207982
Modern Language Association (MLA)
Liu, Jianxu…[et al.]. Analysis of Household Consumption Behavior and Indebted Self-Selection Effects: Case Study of Thailand. Mathematical Problems in Engineering No. 2018 (2018), pp.1-12.
https://search.emarefa.net/detail/BIM-1207982
American Medical Association (AMA)
Liu, Jianxu& Sirikanchanarak, Duangthip& Sriboonchitta, Songsak& Xie, Jiachun. Analysis of Household Consumption Behavior and Indebted Self-Selection Effects: Case Study of Thailand. Mathematical Problems in Engineering. 2018. Vol. 2018, no. 2018, pp.1-12.
https://search.emarefa.net/detail/BIM-1207982
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1207982