Inequalities in Consumption Expenditure on Pharmaceuticals: Evidence from Malaysia

Abstract

Pharmaceuticals play an important role in health improvements. This study is the first of its kind to examine the influences of household heads’ sociodemographic characteristics and household profiles on pharmaceuticals expenditure among households of different income levels. The country of interest is a fast-growing developing country. Data from the Malaysian Household Expenditure Surveys 2014 and 2016 were used in the pooled cross-sectional analyses. Double-hurdle models were used to analyze consumption and amount decisions of pharmaceuticals. Analyses stratified by income were conducted. Results showed that households headed by younger adults (<60 years), males, less educated individuals, Bumiputera, and divorced/widowed adults were less likely to consume and spent less on pharmaceuticals compared with households headed by older adults (≥60 years), females, more educated individuals, non-Bumiputera, and single adults. These differentials varied across income groups. In conclusion, household heads’ age, gender, educational levels, ethnicity, marital status, and household profiles are important determining factors of expenditure on pharmaceuticals among low-, middle- and high-income households.

Evaluating Household Consumption Patterns: Comparative Analysis Using Ordinary Least Squares and Random Forest Regression Models

“…Although the importance of using consumption expenditure or income data for poverty analysis is recognised globally, research focusing on measuring poverty through consumption expenditure, especially in Malaysia, is still limited. To the best of the authors knowledge, the recent literature works that discuss household consumption issues with a regression approach in Malaysia are as follows: Ang & Cheah (2023), Zin & Nabilah (2015), and Ayyash & Sek (2020) [14][15][16]. Ang & Cheah (2023) [14] discussed the consumption inequality issue among different income groups in terms of consumption of pharmaceutical goods only.…”

“…To the best of the authors knowledge, the recent literature works that discuss household consumption issues with a regression approach in Malaysia are as follows: Ang & Cheah (2023), Zin & Nabilah (2015), and Ayyash & Sek (2020) [14][15][16]. Ang & Cheah (2023) [14] discussed the consumption inequality issue among different income groups in terms of consumption of pharmaceutical goods only. Although the study highlighted disparities in expenditure in this industry, the broader scope of the consequences of household sociodemographic characteristics on other expenditure types remains unknown.…”