Study to Support Improvement of the PNHA Components: Expenditures on Employer-provided Health Care and Private Schools Health Services

The expenditures for employer-provided health care in private establishments and for student health services in private schools are two components estimated in the Philippine National Health Accounts (PNHA). The basic methodology for producing the annual estimates of the two components have remained the same since the first PNHA was produced in 1994 and estimation procedures had continued to use through the years the parameters (average costs) generated from the 1993-1994 establishments and private schools surveys. The surveys on health expenditures of private establishments and private schools were conducted again in 2013-2014 as part of this study. Results from the new surveys are used to generate the updated parameters for PNHA estimation. Additionally, results from the survey provide detail on curative care provision and preventive health care activities of establishments and private schools

Philippine Population Management Program (PPMP) Expenditures, 1998 and 2000

This paper presents the first attempt at estimating the expenditures on the Philippine Population Management Program (PPMP) for 1998 and 2000. It identifies the major sources of funding, namely, national and local government, foreign-assisted projects, PhilHealth, donors and their cooperating agencies, NGOs, and households. It also disaggregates the expenditures by major components of the PPMP, namely, reproductive health/family planning, adolescent health and youth development, population and development and others. The estimation methodology used is also described in the paper

Consumption, Income, and Intergenerational Reallocation of Resources: Application of NTA in the Philippines, 1999

A countrys population consists of persons at different ages and stages of their economic lifecycle. Those in the population that are incurring lifecycle deficits would not be able to sufficiently support themselves, while those generating surpluses would have more than they require. Resources then have to be reallocated or transferred from the surplus age groups (working ages) to the deficit age groups (children and elderly) and there are various ways to achieve these across age transfers or intergenerational reallocations. Lifecycle consumption and income patterns, and the systems for age reallocations in the Philippines, are examined in this paper using the 1999 NTA Flow Accounts estimates. This paper finds that: (1) Filipinos incur lifecycle deficits and do not become self-sufficient until after age 25, lifecycle surpluses are generated for the next 35 years, and at age 61 consumption starts to exceed labor earnings and lifecycle deficits are once again incurred; (2) In 1999 the estimated aggregate lifecycle deficits amounted to about PhP1,061 billion in current prices (with the young and elderly accounting for 93 percent and 7 percent, respectively) while surpluses generated by the working age group amounted to PhP461 billion, or an excess of PhP600 billion of deficits over surplus; (3) The mix of systems that support the consumption of Filipinos in the deficit ages differ between the young and the elderly groups, with the mix also changing with age for the elderly deficit group; (4) The financing of consumption of children up to age 14 is primarily by public and private transfers, while for the age group 15-25 about half of consumption is already paid for by own wages but a significant part continues to be supported by private transfers; and (5) Consumption of the elderly is financed by own earnings, asset reallocation, private transfers (starting age 73) and to a very small extent by public transfers (starting age 80)

Measuring economic lifestyle and flows across population age groups: Data and methods in the application of the National Transfer Account (NTA) in the Philippines

This paper provides an overview of the National Transfer Accounts (NTA) system and then describes the methods and data used in the application of NTA in the Philippines. The NTA system is consistent with the System of National Accounts. It provides methodologies for assigning labor earnings and consumption to population age groups, and for estimating reallocation or transfer of economic resources across age groups. Age reallocations are generally from the working age groups to children and the elderly. Data sources for the estimation of components of the NTA Flow Accounts for the Philippines include National Income Accounts, National Health Accounts, National Education Expenditure Accounts, household income and expenditure surveys, and government finance documents. Some Philippine NTA results are presented as examples, specifically the age profiles of current consumption (C), labor income (YL), and the lifecycle deficit (LCD)

A Note on Defining the Dependent Population Based on Age

Dependent population is defined as that part of the population that does not work and relies on others for the goods and services they consume. In practice, specific population age groups have in their entirety been categorized as dependent population, even while the definition may not necessarily apply to every individual in the population with the indicated ages. In general those categorized as dependents include the children and the elderly. The rest of the population constitutes the working age population. The delineation of any boundary for children and for working ages varies across countries and studies, has tended to be discretionary, and thus appears arbitrary. This paper shows that the dependent population(s) defined, based on a given set of age cut-offs, are generally heterogeneous in terms of personal attributes particularly in terms of indicators of dependency or nondependency. Thus, the population defined by any given age boundaries may satisfy some indicators of dependency but not others. That is, the age boundary delineated using one dependency indicator, as reference, could be found unsatisfactory when assessed based on a different indicator. Those considering the use of any defined set of age boundaries to identify the dependent populations, whether for research or for the implementation of support programs, should first assess the appropriateness of the boundaries for the intended use. Identifying the dependency indicators relevant to the intended use would facilitate the assessment

Have Lifecycle Consumption and Income Patterns in the Philippines Changed between 1994 and 2002?

Have age profiles of consumption and labor income in the Philippines changed from 1994 to 2002? What are the implications of the changes observed in the lifecycle patterns? The National Transfer Accounts (NTA) methodologies are applied to estimate the per capita age profiles of current consumption and labor income for the Philippines for the years 1994, 1999, and 2002. Age profiles estimated include those for public and private consumption for three broad types, i.e., education, health, and other, and two types of labor income, i.e., earnings from paid employment and self employment income. Some of the main findings include: (1) Consumption pattern by age: The age profile for mean per capita current consumption is strongly influenced by the profile of private other consumption being the single largest item of consumption. The pronounced sharp rise in per capita mean consumption observed up to age 18 and the subsequent decline is due to the age pattern of public and private education spending. And the gradual increase in per capita consumption after age 45 may be attributed to the increasing per capita public and private spending for health care as age increases. (2) Consumption age profile over time: The age profiles for current consumption have generally remained unchanged from 1994 to 2002, with mean age of consumption staying at about 27 years. (3) Labor income pattern by age: The age profile of labor income has the expected inverted-U shape, peaking at around age 40. (4) Labor income age profile over time: The overall shape of the age income profiles have generally remained the same, but a gradual shift of the position of the profiles toward the right was observed from 1994 to 2002. The mean age of labor income was 35 in 1994, 38 in 1999, and 39 in 2002. The implications of the consumption and labor income lifecycle patterns and changes observed over time for the Philippines include the following: increase in the deficit age cut-off at older ages; increase in the span of productive or surplus ages; and increase in the lifecycle surplus to deficit ratio

Implications of Philippine Trends in Education Financing and Projected Change in School-age Population on Education Expenditures by Income Group: Using National Transfer Accounts Results

Financing of education in the Philippines is mainly by the government (public) and by households (private), and since the 1990s there has been a shift in the public/private mix in education financing toward higher private share. Between 2007 and 2040 the schooling age population of the Philippines is projected to continue to increase in size and the age structure to shift toward higher proportion in the age group that attend the tertiary school level. This paper presents results of simulations of aggregate education consumption or expenditures by age and by income group for two hypothetical scenarios: simulations using an alternative education financing mix (alternative to the 2007 financing mix); and simulations using the 2040 school-age population (in place of the 2007 population).The aggregate age profile simulations for the two scenarios are then compared with the 2007 actual aggregate age profiles to derive implications of the two sets of change on the education expenditures of the different income groups. The comparisons showed that the two changes, shift in education financing mix toward higher private share and change in school-age population age structure from 2007 to 2040, would among others result to reduced share of education resources and higher per capita private education cost for the bottom income tercile group

Comparing the 1999 and 2007 Philippine NTA Estimates and Examining the Effects of a Definitional Change of Overseas Workers' Remittances

This paper compares the estimates of the 1999 and 2007 Philippine National Transfer Accounts (NTA) and examines the implications of using two alternative treatments or definitions of overseas Filipino workers' (OFW) remittances in the NTA. To reflect official definitions in the Philippine System of National Accounts, the treatment of OFW remittances in the estimation is changed from being mainly interhousehold transfers in previous NTA estimates to being mainly labor income (earnings) in the revised NTA estimates. This results in a downward revision in lifecycle deficit estimates for 1999 and 2007, highlighting the sensitivity of estimates to definitional changes

Philippines 2007 National Transfer Accounts: Consumption, Income, and Intergenerational Reallocation of Resources

The 2007 NTA for the Philippines provides more recent information about which population age groups incur lifecycle deficit, the sizes of the aggregate deficits, and how consumption is financed for the different age groups. It also provides age profiles for consumption and labor income (and components) estimated using 2007 data. The 2007 Philippines NTA serves two main purposes: it provides the update on the economic lifecycle information for the Philippines that was first generated by the 1999 NTA; and it provides updated age profiles for consumption and labor income that can be used to examine the economic implications of change in the size and age structure of Philippine population that is projected for the future

Philippines 2007 National Transfer Accounts: Consumption, Income, and Intergenerational Reallocation of Resources - Revised Estimates

This paper describes the revised national level estimates of the 2007 Philippines NTA. The differences between the previous and the revised 2007 Philippines NTA Flow Accounts estimates are due to the change in the treatment of overseas Filipino workers' (OFW) remittances: treated as interhousehold transfers in the previous estimates; and treated mainly as labor income (earnings) in the revised estimates. The main changes in the estimates and results are those related to labor income and lifecycle deficit including: (1) the peak ages in per capita earnings and self-employment are both lower by one year at 28 years (previously 29 years) and 44 years (previously 45 years), respectively; (2) lifecycle deficit age cut-off are 24 years (previously 25 years) for the young and 59 years (previously 58 years) for the elderly; and (3) there is negative lifecycle deficit (i.e., there is surplus) for ages 25-58 years (previously 26-57 years)