AN ECONOMIC COMPARISON OF THE EXPENDITURE PATTERNS OF PHILIPPINE HOUSEHOLDS ON EDUCATION AND HEALTH
BY REGION, 2003-2006
JOSHUA TINASAS GALVANTE
SUBMITTED TO THE FACULTY OF THE DEPARTMENT OF ECONOMICS COLLEGE OF ECONOMICS AND MANAGEMENT
UNIVERSITY OF THE PHILIPPINES LOS BAÑOS IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
BACHELOR OF SCIENCE IN ECONOMICS
GALVANTE, J.T. 2009. An Economic Comparison of the Expenditure Patterns of Philippine Households on Education and Health by Region, 2003-2006.
Undergraduate Thesis. University of the Philippines Los Baños.
Adviser: Dr. Yolanda T. Garcia
ABSTRACT
The study analyzed the regional expenditure patterns on education and health of Philippine households by income groups. Various analytical procedures such as geographic mapping, descriptive analysis, and regression and correlation analysis were employed to point out the factors affecting the household’s decision to avail of education and health services.
Geographic mapping was used to determine the accessibility of education and health services to the Filipino household by pointing out its locations across the country.
From the mapping process, it was seen that most private institutions, both for education and health, were located on the southern part of Luzon, specifically the National Capital Region. Generally, public institutions are more dispersed in nature than private entities.
A descriptive analysis of the education and health expenditure of households by region was also conducted to see if income plays a big role in the household’s decision in acquiring education and health services. It was found out that households across regions spend relatively spend the same percentage of their total income for these services, although higher income groups post higher nominal values than the others.
Lastly, two regression techniques were utilized due to econometric issues – Ordinary Least Squares and Ridge Regression. In the end, a correlation analysis was used to generate values that can be interpreted. From the analysis, average household size appeared to have a negative relationship with both education and health expenditure.
From the result, a population drive to decrease family size is an option the government can take to reduce the expenses on education and health, making it more accessible to the general public.
TABLE OF CONTENTS
Page
TITLE PAGE i
ACCEPTANCE SHEET ii
BIOGRAPHICAL SKETCH iii
ACKNOWLEDGMENT iv
ABSTRACT v
TABLE OF CONTENTS vi
LIST OF TABLES viii
LIST OF FIGURES ix
INTRODUCTION
Background of the Study 1
Significance of the Study 3
Statement of the Problem 4
Objectives of the Study 5
REVIEW OF RELATED LITERATURE
Studies on Education 6
Studies on Health 8
METHODOLOGY
Conceptual Framework 11
Analytical Procedure
Geographic Mapping 15
Regression and Correlation Analyses 16
Sources of Data
Data Set 17
Assessment of Expenditures by Regional Income Groups
Education Expenditures and Income 36
Health Expenditures and Income 40
Regression and Correlation Analyses
Nature of Data 46
Ordinary Least Squares Estimates 48
Ridge Regression Estimates 52
Correlation Analysis 56
SUMMARY AND CONCLUSION 60
REFERENCES 63
LIST OF TABLES
Table TITLE Page
1.1 Total Education Expenditure of the Philippines, 1991 – 1998 20 1.2 Total Health Expenditure of the Philippines, 1997 – 2005 21 2.1 Education Institutions in the Philippines by Region, 2007 32 2.2 Higher Educational Institutions in the Philippines by Region,
2008 32
2.3 Hospitals in the Philippines by Region, 2005 33
3.1 Regional Groups by Income 35
4.1 Percentage of Education Expenditure to Average Income 37 4.2 Average Book Expenses in Cash and Kind by Region 39 4.3 Average School Supplies Expenses in Cash and Kind by Region 39 5.1 Percentage of Health Expenditure to Average Income 41 5.2 Average Medicine Expenses in Cash and Kind by region 44 5.3 Average Food Supplement Expenses in Cash and Kind by region 44 6.1 Number of Respondents to the Family Income and Expenditure
Survey 47
6.2 Average Household Sizes of Philippine Households in the FIES 47 7.1 Double Logarithmic Estimates of Factors Affecting the Education
Expenditure of Philippine Households 49
7.2 Ordinary Least Squares (OLS) Estimates of Factors Affecting the
Health Expenditure of Philippine Households 49
8.1 Results of the Ridge Regression on the Education Double
Logarithmic Model 54
LIST OF FIGURES
Figure TITLE Page
1 Conceptual Framework of the Study 14
2.1 Total Education Expenditure of the Philippines, 1991 – 2008 19 3.1 Private and Public Elementary Schools in the Philippines 24 3.2 Private and Public Elementary Schools in the National Capital
Region 25
3.3 Private and Public High Schools in the Philippines 26 3.4 Private and Public High Schools in the National Capital Region 27 3.5 State and Private Higher Educational Institutions in the Philippines 28 3.6 State and Private Higher Educational Institutions in the National
Capital Region 29
3.7 Public and Private Hospitals in the Philippines 30 3.8 Public and Private Hospitals in the National Capital Region 31 4.1 Percentage of Education Expenditure to Regional Average Income 36 4.2 Distribution of Average Books Expenditure by Regional Income 38 4.3 Distribution of Average School Supplies Expenditure by Regional
Income 38
5.1 Percentage of Health Expenditure to Regional Average Income 41 5.2 Distribution of Average Medicine Expenditure by Regional Income 43 5.3 Distribution of Average Food Supplements Expenditure by Regional
Income 43
