• KDI Journal of Economic Policy
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• v.28 no.2
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• pp.1-49
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• 2006

Considering the fact that households' demographic characteristics affect consumption decision, it is conjectured that rapid demographic changes would lead to a substantial change in the composition of private consumption expenditure. This paper estimates the demand functions of various consumption items by applying the Quadratic Almost Ideal Demand System(QUAIDS) model to Household Income and Expenditure Survey data, and then provides a long-term forecast of the composition of household consumption expenditure for 2005-2020. The paper shows that Korea's consumption expenditure will maintain the recent years' rapid change, of which a considerable portion is due to rapid demographic changes. Results of the paper can be utilized in forecasting the change in the industrial structure of the economy, as well as in firms' investment planning.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.1
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• pp.188-194
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• 2011

Using cross-section of 83 countries, this paper empirically examines the relationship between corruption and government expenditure volatility. A country's corruption is denoted by either control of corruption, compiled by Kaufmann et al. (2008), or corruption perceptions index, provided by Transparency International. In addition, a country's government expenditure volatility is measured by the standard deviation of the change ratio of government expenditure from 1990 to 2005. Regression results suggest that a country's control of corruption and corruption perceptions index (higher ratings signifying more transparency) are significantly and negatively associated with the volatility of government expenditure. However, the estimated coefficients of corruption perceptions index show somewhat reduced statistical significances. The results are robust to the sub-sample of countries excluding European OECD countries. Therefore, the regression results suggest corrupt bureaucrats are able to periodically change economic rules of the game, which results in the possibility of a higher variance in government expenditure.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.9
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• pp.5564-5577
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• 2014

This study examined how the differences in household characteristics influence consumer expenditure patterns. The Price-Scaling AIDS model with household income and expenditure survey data were used for the analysis. The results showed that the income elasticity of the service items is greater than non-service items, indicating an increase in higher demand of service items with the same increase in household income. The household expenditure patterns vary according to the commodities, holding age and income level. The so-called traditional pattern, which emphasizes spending for non-service items, changed to the one with a higher expenditure ratio for service items. Such a change in household expenditure patterns naturally derives the expansion of the relevant service market; hence, the growth of the related service industry. This highlights the need to formulate an appropriate response from the supply side that deals with the changes in the service market.

• Journal of Nutrition and Health
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• v.38 no.10
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• pp.847-855
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• 2005

This study investigated and compared the daily activities and energy expenditure of normally-weighted and obese elementary school children. The participants were 115 boys and 115 girls (6th grade) at ten elementary schools in Busan. Time spent on each activity was evaluated using the twenty-four hour recall method. 1) The general characteristics of the normally-weighted and obese children did not differ, although the normally-weighted children exercised and used stairs more than the obese children.2) Among their classified activities, the children spent most of their time resting, study, leisure, physiology and hygiene, commuting, and housework in that decreasing order. Normally-weighted children spent less time tying down and in conversation with family and friends than obese ones. 3) The children's average activity factors were 1.47 - 1.50. The normally-weighted children's rest energy expenditure (REE) (1391.4 kcal,1264.7 kcal) was less than that of the obese children (1711.4 kcal. 1461.0 kcal) . The normally-weighted children's daily energy expenditure was less than that of the obese, but energy expenditure per body weight was less in obese children than in the normally-weighted. In conclusion, sedentary activities and energy expenditure per body weight was less in the obese compared to the normally-weighted children. Programs to help children perceive and practice desirable physical activities should be suggested for prevention of obesity in children. (Korean J Nutrition 38(10): 847$\sim$855,2005)

• Journal of Digital Convergence
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• v.12 no.7
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• pp.65-76
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• 2014

This paper analyzes whether local public expenditures have converged during the 1985-2011 periods in Korea, using the sixteen metropolitan and provincial governments data. We analyze the convergence of per capita real local public expenditures in terms of both static view and dynamic view of convergence. Furthermore, we derive the estimating equation for per capita real local government expenditure growth function from theoretical model based on Skidmore et al.(2004)[23]. The main results from empirical analyses are such that an increase in aged people helped local government expenditures increase. Also, we found that the convergence speed of economic expenditure is greater than that of social welfare expenditure. Similarly the convergence speed of public capital expenditure is greater than that of public consumption expenditure. In the future we had better examine the convergence of local public goods taking into account their congestion rates.

• Journal of Technology Innovation
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• v.21 no.1
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• pp.1-26
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• 2013

The objectives of this paper are to analyze the effect of government R&D expenditure on employment in the Korean manufacturing sector in which employment is rapidly declining. According to the results of our empirical analysis, government R&D expenditure decreases the level of employment in Korean manufacturing sector in short term period, but it has positive effect on employment by compensation effect in the middle and long term period. Second, the effect of private R&D expenditure on job creation is three times larger than that of government R&D expenditure. Third, costs of labor and capital has negative effect on employment. This study is believed to help understanding the relation between R&D expenditure and employment, and providing policy implications of how to plan and manage government R&D expenditure as a tool of job creation.

• Health Policy and Management
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• v.26 no.3
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• pp.185-194
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• 2016

Background: The purpose of this study is to forecast changes in the prevalence of chronic diseases and health expenditure by age group. Methods: Based on the Future Elderly Model, this study projects the size of Korean population, the prevalence of chronic diseases, and health expenditure over the 2014-2040 period using two waves (2012, 2013) of the Korea Health Panel and National Health Insurance Service database. Results: First, the prevalence of chronic diseases increases by 2040. The population with hypertension increases 2.04 times; the diabetes increases 2.43 times; and the cancer increases 3.38 times. Second, health expenditure on chronic diseases increases as well. Health expenditure on hypertension increases 4.33 times (1,098,753 million won in 2014 to 4,760,811 million won in 2040); diabetes increases 5.34 times (792,444 million won in 2014 to 4,232,714 million won in 2040); and cancer increases 6.09 times (4,396,223 million won in 2014 to 26,776,724 million won in 2040). Third, men and women who belong to the early middle-aged group (44-55 years old) as of 2014, have the highest increase rate in health spending. Conclusion: Most Korean literature on health expenditure estimation employs a macro-simulation approach and does not fully take into account personal characteristics and behaviors. Thus, this study aims to benefit medical administrators and policy makers to frame effective and targeted health policies by analyzing personal-level data with a microsimulation model and providing health expenditure projections by age group.

• Health Policy and Management
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• v.18 no.3
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• pp.110-127
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• 2008

Expenditures on pharmaceuticals of different concepts were estimated and their functional, financing and providers' breakdowns were examined in line with the OECD's System of Health Accounts (SHA) manual. This study also shows the way such estimates are made. The results are then analyzed particularly from the international perspective. Data from both Household Survey by the National Statistical Office and the National Health and Nutritional Survey by the Ministry of Health and Welfare of Korea were used to estimate pharmaceutical expenditures that. are financed by out-of-pocket payments of the household, while national health insurance data etc. were used for estimation of pharmaceutical expenditures that are financed by public funding sources. The 'per capita expenditure on pharmaceutical/medical non-durables' in Korea stood at 380 US$ PPPs, less than the OECD average of 443 US$ PPPs in 2006, but its share of the per capita health expenditure of 25.9% noticeably outnumbered the OECD average of 17.1%, due partly to low per capita health expenditure as a denominator of the ratio. This indicates that Koreans tend to spend less on health care than an OECD average, while tending to spend more on pharmaceuticals than on other health care services, much like the pattern found in relatively low income countries. An international pharmaceuticals pricing mechanism is most likely responsible for such a tendency. In addition, it is to be noted that the percentage comes down to 21.0%, when expenditures on both medical non-durables and herbal medicine, which is locally quite popular among the elderly, have been excluded.

• Health Policy and Management
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• v.21 no.2
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• pp.159-178
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• 2011

Korea ranks high among the OECD member countries with a high out-of-pocket share. In 2006, the government implemented in full scale the policy of extending the health insurance benefit coverage. Included in the policy are lowering the out-of-pocket share of patients of serious case and expanding the medical bill ceiling system to mention just a few. This study proposes to confirm effectiveness of the benefit extension policy by identifying changes in 'out-of-pocket expenditure as a share of the ability to pay' and 'incidence rate of catastrophic health care expenditure' of each individual household as manifested before and after the benefit extension policy was implemented. The 1st and 3rd year data from the Korea Welfare Panel Study (KoWePS), conducted by the Korea Institute for Health and Social Affairs (KIHASA), were used for the analysis, where low-income households and ordinary households are sampled separately. While the absolute amount of 'out-of-pocket expenditure' occurred to the average household increased for the period 2005-2007, the 'out-of-pocket expenditure as a share of the ability to pay' decreased. At the same time, the share decreased in the case of low-income households and households with patients of chronic or serious case as contrasted with ordinary households. 'Incidence rates of catastrophic health care expenditure' of ordinary households for 2007 stood at 14.6%, 5.9% and 2.8% at the threshold of 10%, 20% and 30%, respectively. The rates decreased overall between 2005 and 2007, while those of low-income households with patients of serious case statistically significantly increased. An analysis of this study indicates that it is related with the medical bill ceiling system regardless of incomes introduced in 2007.

• Korean Journal of Social Welfare
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• v.64 no.4
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• pp.337-357
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• 2012

This study explores a changing social expenditure structure of welfare states on new social risks, using logistic regression analysis with Panel Corrected Standard Errors Model on panel data of 1997-2007 years from 27 OECD nations. The result of this study presents that social expenditure structures have been adjusted with new social risk structure due to trade openness, female employment rates, and child population rates. Greater trade openness, higher women's employment rates, and lower child population rates are, more social investment expenditures are than income security expenditures. Rates of employment in service industries and elderly population rates are not statistically significant on the change of social expenditure structure. This result does not imply a complete switch from demand-based to supply-based social policy, but somewhat reflects transitions of a social welfare system for changing economic and social environments in order to sustain welfare state economically.