Creating a 2000 IES-LFS Database in Stata

PROVIDE Project Technical Paper 2005:1
expenditure patterns reported in the IES 2000 compared to those found in other data sources,
and second into the income and expenditure patterns by income or expenditure deciles within
the IES 2000 database.

2.4.2. Comparing income and expenditure patterns with other data sources

The IES 2000 data is used to derive household expenditure accounts of the PROVIDE SAM.
The commodity accounts are labelled C1 to C96, denoting 96 household commodities or
services that can be purchased by households. Additional expenditure accounts include
household transfers (hhtrans), household income tax (hhinctax) and local taxes (hhlocaltax),
household savings (hhsav) and other expenditures (hhother). All these additional expenditure
accounts are also mapped directly from the IES 2000 expenditure data (see section 3.2.8 for
more on the mapping of these accounts). A full listing and description of the accounts appears
in the appendix (section 7.2, Table 11).

The Supply and Use Tables for 2000 (SUT 2000) (SSA, 2003b) contains an estimate of
national household expenditure on 95 commodity groups (C96 - domestic services - is not
included in the SUT 2000 as a commodity/service). Although these expenditure estimates are
based on data from the IES 1995, the Bureau of Market Research and the SARB, it provides a
useful benchmark against which to compare the IES 2000 commodity expenditure estimates.
Relative expenditures are compared, i.e. expenditure on each commodity group is divided by
total expenditure to derive the expenditure share. Figure 2 only includes those commodity
categories for which expenditure exceeded 1% of total expenditure, leaving 30 commodity
groups. The figure shows that the relative expenditures reported by IES 2000 and SUT 2000
are similar to some extent, but large differences remain for some commodity groups (see
Table 11 for account descriptions). Different interpretations between Statistics South Africa
and PROVIDE of how expenditure categories should be mapped to the 95 commodity groups,
as well as changes in the expenditure patterns between 1995 and 2000 may explain some of
these differences.

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