Decomposition analysis of the Gini coefficient of consumer expenditures in Botswana

Figures & data

Table 1. Description of components.

Type of Consumption Expenditure	Description of Components
Food	Includes bread, cereals and grains, meat, fish and sea food, milk, cheese and eggs, oils and fats, fruits, vegetables, sugar, jam honey, chocolate, and confectionery, food products like spices, salt, herbs and others
Alcohol and Tobacco	Include spirits, wine, beer, cigarettes, cigars, pipe tobacco, snuff, etc.
Clothing and Footwear	Includes clothing materials, garments, cleaning and repair and hire of clothing, shoes and other footwear, repair and hire of footwear.
Housing	Includes housing and rentals (normally include payment for the use of the land on which the property stands, the dwelling occupied, the fixtures and fittings for heating, plumbing, lighting, etc., and, in the case of a dwelling let furnished, the furniture). Rentals also include payment for the use of a garage to provide parking in connection with the dwelling. The garage does not have to be physically contiguous to the dwelling, nor does it have to be leased from the same landlord.
Household Goods and Services	Includes household water supply, electricity, refuse collection, sewage collection, gas, liquid fuels, solid fuels, heat energy, and other services relating to the dwelling e.g. gardening and cleaning. Also include goods such as furniture and furnishings, carpets and other floor coverings, repair of furniture, furnishings, and floor coverage, household textiles, household appliances, repair of household appliances, glassware, Tableware and utensils, tools and equipment for house and garden, goods and services for routine household maintenance
Health Care	Includes medical products, appliances and equipment (pharmaceutical products, other medical products like thermometers, therapeutic appliances and equipment, outpatient medical services, dental services, paramedical services, and hospital services).
Transport	Includes motor cars, motorcycles, bicycles, animal drawn vehicles (Includes animals required to draw the vehicles and related equipment (yokes, collars, harnesses, bridles, reins, etc., but excludes: horses and ponies, horse- or pony drawn vehicles and related equipment purchased for recreational purposes)). Transport also includes spare parts and accessories for personal transport, fuels and lubricants for personal transport, maintenance and repair of personal transport equipment, other services in respect of personal transport equipment, passenger transport by railway, passenger transport by road, passenger transport by air, passenger transport by sea and inland waterway, and any other purchased transport services.
Communication	Includes postal services, telephone and telefax equipment (Purchases of telephones, radio-telephones, telefax machines, telephone-answering machines and telephone loudspeakers), telephone and telefax services (installation and subscription costs of personal telephone equipment, telephone calls from a private line or from a public line, telephone calls from hotels, cafés, restaurants and the like, telegraphy, telex and telefax services, information transmission services, internet connection services hire of telephones, telefax machines, telephone-answering machines and, telephone loudspeakers).
Recreation and Culture	Includes Equipment for the reception, recording and reproduction of sound and pictures, Photographic and cinematographic equipment and optical instruments, Information processing equipment, Recording media, Repair of audio-visual, photographic and information processing equipment, Musical instruments and major durables for indoor recreation, Maintenance and repair of other major durables for recreation and culture, Games, toys and hobbies, Equipment for sport, camping and open-air recreation, cultural services, holiday packages, etc.
Education	Includes pre-primary and primary education, secondary education, post-secondary non-tertiary education, tertiary education, and education not definable by the above-mentioned levels
Restaurants and Hotels	Includes catering services provided by restaurants and cafes, and work canteens, accommodation services.
Miscellaneous	Includes Other expenses like gifts, remittances, hairdressing and personal grooming establishments, electric appliances for personal care, jewellery, clocks and watches, and charity

Table 2. Description of variables.

2009/10 BCWIS
Expenditure Component	Obs	Weight	Mean	Std. Dev.	Min	Max
Total Expenditure	4950	350 928	4410.16	10 086.35	1100.43	568 091.10
Food	4950	350 928	724.80	750.81	607.00	22 578.45
Education	4950	350 928	241.64	851.13	0.00	15 395.75
Health	4950	350 928	16.74	265.97	0.00	7600.00
Housing	4950	350 928	567.88	1551.33	0.00	42 764.15
Alcohol and Tobacco	4950	350 928	347.78	617.55	0.00	18 216.00
Communication	4950	350 928	233.38	441.08	0.00	10 185.08
Transport	4950	350 928	969.97	5229.20	0.00	288 638.90
Recreation and Culture	4950	350 928	213.71	1018.88	0.00	34 525.00
Restaurant and Hotels	4950	350 928	133.45	2147.56	0.00	140 000.00
Household Goods and Services	4950	350 928	378.38	1992.14	0.00	107 638.10
Clothes and Footwear	4950	350 928	328.87	724.48	0.00	42 666.67
Miscellaneous	4950	350,928	394.76	1875.19	0.00	74 549.88
2015/16 BMTIS
Total Expenditure	5047	441 106	5060.32	12 378.20	1000.31	475 218.30
Food	5047	441 106	529.48	316.84	308.06	5480.00
Education	5047	441 106	241.64	851.13	0.00	15 395.75
Health	5047	441 106	180.69	841.85	0.00	28 290.33
Housing	5047	441 106	928.50	9372.32	0.00	438 219.30
Alcohol and Tobacco	5047	441 106	928.50	9372.32	0.00	438 219.30
Communication	5047	441 106	359.22	849.07	0.00	28 000.00
Transport	5047	441 106	1256.18	5049.78	0.00	192 000.00
Recreation and Culture	5047	441 106	149.34	464.43	0.00	11 113.33
Restaurant and Hotels	5047	441 106	194.31	505.97	0.00	12 006.67
Household Goods and Services	5047	441 106	261.51	1067.29	0.00	43 057.75
Clothes and Footwear	5047	441 106	311.91	550.30	0.00	14 081.51
Miscellaneous	5047	441 106	468.63	1046.28	0.00	23 205.00

Table 3. 2009/10 inequality effects by budget component.

Component	Contribution of Total Inequality (Ck)	Expenditure Share (Sk)	Component Gini (Gk)	Correlation with Rank of Total Expenditure (Rk)	Share Expenditure Inequality (IK)	Relative Expenditure Inequality (Ik/Sk)	Relative Marginal Effect (Ik-Sk)	Expenditure Elasticity (ⱸ = (Rk*Gk)/G)
Food	0.039	0.165	0.421	0.557	0.076	0.462	−0.089	0.472
Alcohol and Tobacco	0.010	0.081	0.732	0.172	0.020	0.248	−0.061	0.253
Clothes and Footwear	0.027	0.076	0.623	0.577	0.054	0.708	−0.022	1.180
Housing	0.047	0.122	0.733	0.519	0.091	0.748	−0.031	0.764
Household Goods and Services	0.050	0.085	0.793	0.740	0.098	1.154	0.013	1.180
Health	0.001	0.002	0.987	0.473	0.002	0.889	0.000	0.939
Transport	0.180	0.227	0.884	0.895	0.354	1.559	0.127	1.592
Communication	0.022	0.053	0.675	0.619	0.044	0.824	−0.009	0.841
Recreation and Culture	0.034	0.049	0.904	0.773	0.067	1.374	0.018	1.404
Education	0.003	0.006	0.983	0.595	0.007	1.161	0.001	1.177
Restaurant and Hotels	0.028	0.030	0.992	0.940	0.055	1.836	0.025	1.874
Miscellaneous	0.057	0.089	0.808	0.794	0.113	1.262	0.023	1.289
Total	0.498	1.00	0.498				0.00

Note: Author’s Calculations from the 2009/10 Botswana Core Welfare Indicator Survey Data.

Table 4. 2015/16 inequality effects by budget component.

Component	Contribution of Total Inequality (Ck)	Expenditure Share (Sk)	Component Gini (Gk)	Correlation with Rank of Total Expenditure (Rk)	Share Expenditure Inequality (Ik)	Relative Expenditure Inequality (Ik/Sk)	Relative Marginal Effect (Ik-Sk)	Expenditure Elasticity (ⱸ=(Rk*Gk)/G)
Food	0.005	0.108	0.224	0.227	0.010	0.096	−0.098	0.095
Alcohol and Tobacco	0.013	0.037	0.880	0.391	0.024	0.646	−0.013	0.644
Clothes and Footwear	0.025	0.061	0.652	0.630	0.047	0.770	−0.014	0.770
Housing	0.146	0.192	0.864	0.879	0.274	1.425	0.082	1.425
Household Goods and Services	0.029	0.050	0.831	0.705	0.055	1.099	0.005	1.100
Health	0.021	0.034	0.864	0.699	0.039	1.132	0.005	1.132
Transport	0.161	0.239	0.770	0.875	0.302	1.264	0.063	1.264
Communication	0.031	0.072	0.631	0.678	0.058	0.803	−0.014	0.803
Recreation and Culture	0.018	0.030	0.862	0.699	0.033	1.132	0.004	1.130
Education	0.026	0.045	0.871	0.662	0.048	1.081	0.004	1.081
Restaurant and Hotels	0.017	0.038	0.796	0.585	0.033	0.875	−0.005	0.874
Miscellaneous	0.042	0.096	0.749	0.577	0.078	0.810	−0.018	0.810
Total	0.533	1.000	0.533				0.000

Note: Author’s calculations from the 2015/16 Botswana multi topic household survey.

Table 5. Bootstrap Results – 2009/10.

Bootstrap statistics					Number of Obs = 5091 Replications = 1000
Variable	Reps	Observed	Bias	Std. Err.	[95% Conf. Interval]
Food	1000	−0.089	0.000	0.002	−0.093	−0.084	(N)
					−0.093	−0.084	(P)
					−0.093	−0.084	(BC)
Alcohol and Tobacco	1000	−0.061	0.000	0.003	−0.066	−0.056	(N)
					−0.066	−0.056	(P)
					−0.066	−0.056	(BC)
Clothes and Footwear	1000	−0.022	−0.000	0.002	−0.025	−0.019	(N)
					−0.025	−0.019	(P)
					−0.025	−0.019	(BC)
Housing	1000	−0.031	0.000	0.005	−0.040	−0.022	(N)
					−0.039	−0.021	(P)
					−0.039	−0.022	(BC)
Households Goods and Services	1000	0.013	0.000	0.006	0.001	0.026	(N)
					0.002	0.027	(P)
					0.002	0.027	(BC)
Health	1000	−0.000	0.000	0.000	−0.001	0.001	(N)
					−0.001	0.001	(P)
					−0.001	0.001	(BC)
Transport	1000	0.127	−0.000	0.007	0.113	0.140	(N)
					0.114	0.140	(P)
					0.114	0.141	(BC)
Communication	1000	−0.009	0.000	0.001	−0.012	−0.007	(N)
					−0.012	−0.007	(P)
					−0.012	−0.007	(BC)
Recreation and Culture	1000	0.018	0.000	0.003	0.012	0.025	(N)
					0.012	0.025	(P)
					0.012	0.025	(BC)
Education	1000	0.001	0.000	0.001	−0.001	0.003	(N)
					−0.001	0.003	(P)
					−0.001	0.003	(BC)
Restaurants and Hotels	1000	0.025	−0.000	0.005	0.015	0.035	(N)
					0.016	0.035	(P)
					0.016	0.035	(BC)
Miscellaneous	1000	0.023	−0.000	0.004	0.016	0.031	(N)
					0.017	0.031	(P)
					0.017	0.031	(BC)

Note Author’s calculations from the BCWIS of 2009/10 (Note: N = Normal, P = Percentile and BC = Bias-Corrected).

Table 6. Bootstrap Results: 2015/16.

Bootstrap statistics					Number of Obs = 5091 Replications = 1000
Variable	Reps	Observed	Bias	Std. Err.	[95% Conf.Interval]
Food	1000	−0.097	0.000	0.003	−0.104	−0.091	(N)
					0.104	−0.091	(P)
					0.103	−0.091	(BC)
Alcohol and Tobacco	1000	−0.013	0.000	0.002	−0.016	−0.010	(N)
					0.016	−0.010	(P)
					0.016	−0.009	(BC)
Clothes and Footwear	1000	−0.014	0.000	0.001	−0.016	−0.012	(N)
					0.016	−0.011	(P)
					0.016	−0.012	(BC)
Housing	1000	0.082	-0.002	0.015	0.052	0.112	(N)
					0.051	0.111	(P)
					0.055	0.114	(BC)
Households Goods and Services	1000	0.005	0.000	0.002	0.000	0.010	(N)
					0.001	0.010	(P)
					0.001	0.010	(BC)
Health	1000	0.004	0.000	0.002	0.001	0.008	(N)
					0.002	0.009	(P)
					0.001	0.009	(BC)
Transport	1000	0.063	0.001	0.011	0.042	0.084	(N)
					0.042	0.085	(P)
					0.041	0.083	(BC)
Communication	1000	−0.014	0.000	0.002	−0.018	−0.011	(N)
					0.017	−0.010	(P)
					0.017	−0.010	(BC)
Recreation and Culture	1000	0.004	0.000	0.001	0.001	0.006	(N)
					0.002	0.006	(P)
					0.002	0.006	(BC)
Education	1000	0.004	0.000	0.002	0.000	0.008	(N)
					0.000	0.008	(P)
					0.000	0.008	(BC)
Restaurants and Hotels	1000	−0.005	0.000	0.001	−0.007	−0.003	(N)
					0.007	−0.002	(P)
					0.007	−0.003	(BC)
Miscellaneous	1000	−0.018	0.000	0.003	−0.023	−0.013	(N)
					0.023	−0.013	(P)
					0.023	−0.013	(BC)

Author’s calculations from the BMTHS of 2015/16 (Note: N = Normal, P = Percentile and BC = Bias-Corrected).