Household Consumption-Decision Practices Among Songket Artisans: Associations with Income-Related and Socioeconomic Conditions

Yiyin Nadia

doi:10.64268/jifes.v2i1.167

Authors

Yiyin Nadia Universitas Islam Negeri Raden Fatah Palembang, Indonesia

DOI:

https://doi.org/10.64268/jifes.v2i1.167

Keywords:

Behavioral decision-making, Consumption decisions, Household budgeting, Home-based artisans, Socioeconomic context, Songket

Abstract

Background: Home-based craft work intersects with household spending decisions, yet reported budgeting and price responses are not equivalent to observed expenditure.

Aims: To examine associations of income-related and family socioeconomic agreement indices with self-reported consumption-decision practices among women songket artisans in Palembang.

Methods: This decision-oriented reappraisal used estimates from a 2018 cross-sectional survey of 50 women selected from a reported population of 100 in Kelurahan 30 Ilir. Thirteen five-point Likert items were combined into two predictors and a four-item practice index; the original multiple regression was retained without re-estimation.

Results: Both indices were positively associated with the practice index: income-related X1 (B = .318, β = .396, p = .001) and family socioeconomic X2 (B = .615, β = .442, p < .001). The fitted model was significant, F(2, 47) = 21.897, p < .001, R² = .482.

Conclusion: The results describe conditional associations between heterogeneous survey responses. They do not establish effects on monetary consumption, decision quality, or causal mechanisms. The study identifies measurement domains for subsequent household-decision research in home-based production settings.

References

Achidsti, A., & Fathin, C. A. (2022). Home-based women workers vulnerability during the COVID-19: A gendered perspective of political economy. JKAP (Jurnal Kebijakan dan Administrasi Publik), 26(1), 59–71. https://doi.org/10.22146/jkap.67984

Adams, J. J., & Rojas, E. (2024). Household consumption and dispersed information. Journal of Monetary Economics, 147, Article 103592. https://doi.org/10.1016/j.jmoneco.2024.103592

Aidala, F., Armantier, O., Koşar, G., Somerville, J., Topa, G., & van der Klaauw, W. (2024). Gasoline price changes and consumer inflation expectations: Experimental evidence. Journal of Economic Behavior & Organization, 220, 66–80. https://doi.org/10.1016/j.jebo.2024.01.027

Albuquerque, B., & Green, G. (2023). Financial concerns and the marginal propensity to consume in COVID times: Evidence from UK survey data. Journal of Macroeconomics, 78, Article 103563. https://doi.org/10.1016/j.jmacro.2023.103563

Alvarez Padilla, Y., Loibl, C., & Boone, B. (2025). Money talks: Testing a series of financial literacy modules to encourage financial conversations in middle school families. Journal of Family and Economic Issues, 46, 1–20. https://doi.org/10.1007/s10834-024-09953-z

Amasino, D. R., Dolgin, J., & Huettel, S. A. (2023). Eyes on the account size: Interactions between attention and budget in consumer choice. Journal of Economic Psychology, 97, Article 102632. https://doi.org/10.1016/j.joep.2023.102632

Andrade, P., Gautier, E., & Mengus, E. (2023). What matters in households’ inflation expectations? Journal of Monetary Economics, 138, 50–68. https://doi.org/10.1016/j.jmoneco.2023.05.007

Antonides, G., & de Groot, I. M. (2022). Mental budgeting of the self-employed without personnel. Journal of Behavioral and Experimental Economics, 98, Article 101852. https://doi.org/10.1016/j.socec.2022.101852

Baker, S. R., Johnson, S., & Kueng, L. (2024). Financial returns to household inventory management. Journal of Financial Economics, 151, Article 103758. https://doi.org/10.1016/j.jfineco.2023.103758

Bertola, G., & Lo Prete, A. (2025). Financial literacy and risk protection during the Covid-19 pandemic. Italian Economic Journal, 11(2), 645–666. https://doi.org/10.1007/s40797-024-00286-2

Bielskis, K., & Lastauskas, P. (2024). The role of housing market and credit on household consumption dynamics: Evidence from the OECD countries. Journal of Economic Behavior & Organization, 228, Article 106741. https://doi.org/10.1016/j.jebo.2024.106741

Boehm, J., Fize, E., & Jaravel, X. (2025). Five facts about MPCs: Evidence from a randomized experiment. American Economic Review, 115(1), 1–42. https://doi.org/10.1257/aer.20240138

Botha, F., & Ribar, D. C. (2023). For worse? Financial hardships and intra-household resource allocation among Australian couples. Economic Modelling, 119, Article 106114. https://doi.org/10.1016/j.econmod.2022.106114

Brown, S., Harris, M. N., Spencer, C., & Taylor, K. (2024). Financial expectations and household consumption: Does middle-inflation matter? Journal of Money, Credit and Banking, 56, 741–768. https://doi.org/10.1111/jmcb.13063

Buchori, I., Zaki, A., Pangi, P., Sejati, A. W., & Pramitasari, A. (2024). Garment industry-led urbanization and women workers: Factory- and home-based work in Indonesia. International Review of Sociology, 34(2), 357–377. https://doi.org/10.1080/03906701.2024.2366348

Cai, Y., Li, W., & Du, H. (2026). Spending for the future or pressuring the present? Educational expenditure and household resilience. Journal of Asian Economics, 104, Article 102183. https://doi.org/10.1016/j.asieco.2026.102183

Carvalho, L. S., Meier, S., & Wang, S. W. (2016). Poverty and economic decision-making: Evidence from changes in financial resources at payday. American Economic Review, 106(2), 260–284. https://doi.org/10.1257/aer.20140481

Cho, Y., Kim, J., & Kim, J. (2025). Why old-age poverty matters: Evidence from consumption responses to income shocks. Journal of Macroeconomics, 86, Article 103718. https://doi.org/10.1016/j.jmacro.2025.103718

Chopra, F., Roth, C., & Wohlfart, J. (2025). Home price expectations and spending: Evidence from a field experiment. American Economic Review, 115(7), 2267–2305. https://doi.org/10.1257/aer.20240022

Chudziak, S. (2024). Consumption modelling using categorisation-enhanced mental accounting. Computational Economics, 64(3), 1391–1442. https://doi.org/10.1007/s10614-023-10475-3

Cismaru, M., & Akdaş, O. (2024). Developing a framework for communications encouraging personal budgeting: A social marketing approach. International Review on Public and Nonprofit Marketing, 21(1), 107–129. https://doi.org/10.1007/s12208-023-00367-5

Coibion, O., Georgarakos, D., Gorodnichenko, Y., & van Rooij, M. (2023). How does consumption respond to news about inflation? Field evidence from a randomized control trial. American Economic Journal: Macroeconomics, 15(3), 109–152. https://doi.org/10.1257/mac.20200445

Coibion, O., Georgarakos, D., Gorodnichenko, Y., Kenny, G., & Weber, M. (2024). The effect of macroeconomic uncertainty on household spending. American Economic Review, 114(3), 645–677. https://doi.org/10.1257/aer.20221167

Dahan, M., & Sayag, D. (2024). Scarcity and consumption priorities. Journal of Behavioral and Experimental Economics, 108, Article 102147. https://doi.org/10.1016/j.socec.2023.102147

de Bruijn, E.-J., & Antonides, G. (2022). Poverty and economic decision making: A review of scarcity theory. Theory and Decision, 92, 5–37. https://doi.org/10.1007/s11238-021-09802-7

D’Acunto, F., & Weber, M. (2024). Why survey-based subjective expectations are meaningful and important. Annual Review of Economics, 16, 329–357. https://doi.org/10.1146/annurev-economics-091523-043659

Fermand, E., Kuhnen, C. M., Li, G., & Ben-David, I. (2024). Extrapolative uncertainty and household economic behavior. Management Science, 70(8), 5607–5625. https://doi.org/10.1287/mnsc.2023.00820

Fuster, A., Kaplan, G., & Zafar, B. (2021). What would you do with $500? Spending responses to gains, losses, news, and loans. The Review of Economic Studies, 88(4), 1760–1795. https://doi.org/10.1093/restud/rdaa076

Gomes, F., Haliassos, M., & Ramadorai, T. (2021). Household finance. Journal of Economic Literature, 59(3), 919–1000. https://doi.org/10.1257/jel.20201461

Hilbert, L. P., Noordewier, M. K., & van Dijk, W. W. (2022). Financial scarcity increases discounting of gains and losses: Experimental evidence from a household task. Journal of Economic Psychology, 92, Article 102546. https://doi.org/10.1016/j.joep.2022.102546

Hughes, B. T., Ludwig, R. M., Robles, K. E., & Berkman, E. T. (2024). The effect of financial stress on inhibitory control and economic decisions. Journal of Experimental Social Psychology, 113, Article 104621. https://doi.org/10.1016/j.jesp.2024.104621

Kuchler, T., & Pagel, M. (2021). Sticking to your plan: The role of present bias for credit card paydown. Journal of Financial Economics, 139(2), 359–388. https://doi.org/10.1016/j.jfineco.2020.08.002

Larsen, V., Carriaga, R., Wething, H., Zhao, J., & Hall, C. (2023). Behavioral consequences of income and expense shocks. Journal of Behavioral and Experimental Economics, 106, Article 102067. https://doi.org/10.1016/j.socec.2023.102067

Massil, J. K., Tadadjeu, S., & Yogo, U. T. (2025). Uncertainty and household consumption in developing countries. Structural Change and Economic Dynamics, 73, 51–64. https://doi.org/10.1016/j.strueco.2024.12.017

Niizeki, T., & Hori, M. (2023). Inflation expectations and household expenditure: Evidence from pseudo-panel data in Japan. Journal of Economic Behavior & Organization, 214, 308–324. https://doi.org/10.1016/j.jebo.2023.08.008

Qian, W. (2025). House price expectations and household spending: A survey-based experiment. Journal of Economic Behavior & Organization, 235, Article 107073. https://doi.org/10.1016/j.jebo.2025.107073

Silva, E. M., Moreira, R. de L., & Bortolon, P. M. (2023). Mental accounting and decision making: A systematic literature review. Journal of Behavioral and Experimental Economics, 107, Article 102092. https://doi.org/10.1016/j.socec.2023.102092

Simon, H. A. (1955). A behavioral model of rational choice. The Quarterly Journal of Economics, 69(1), 99–118. https://doi.org/10.2307/1884852

Song, Y., Gong, Y., Song, Y., & Chen, X. (2024). Exploring the impact of digital inclusive finance on consumption volatility: Insights from household entrepreneurship and income volatility. Technological Forecasting and Social Change, 200, Article 123179. https://doi.org/10.1016/j.techfore.2023.123179

van Raaij, W. F., Riitsalu, L., & Põder, K. (2023). Direct and indirect effects of self-control and future time perspective on financial well-being. Journal of Economic Psychology, 99, Article 102667. https://doi.org/10.1016/j.joep.2023.102667

Weber, M., D’Acunto, F., Gorodnichenko, Y., & Coibion, O. (2022). The subjective inflation expectations of households and firms: Measurement, determinants, and implications. Journal of Economic Perspectives, 36(3), 157–184. https://doi.org/10.1257/jep.36.3.157

Xu, C. (2023). Do households react to policy uncertainty by increasing savings? Economic Analysis and Policy, 80, 770–785. https://doi.org/10.1016/j.eap.2023.09.018

Xu, Z., Xue, J., & Zhang, Z. (2025). Understanding the distributional effects of income uncertainty shocks. China Economic Review, 91, Article 102377. https://doi.org/10.1016/j.chieco.2025.102377

Zhang, C. Y., Sussman, A. B., Wang-Ly, N., & Lyu, J. K. (2022). How consumers budget. Journal of Economic Behavior & Organization, 204, 69–88. https://doi.org/10.1016/j.jebo.2022.09.025