the revised finnish reference budgets

Valtiotieteellinen tiedekunta 16.9.2016Consumer society research centre, Lehtinen & Aalto 1

The Revised Finnish Reference Budgets

Anna-Riitta Lehtinen & Kristiina Aalto

Consumer Society Research Centre, University of Helsinki

TITA 15.-16.9.2016, Turku

https://www.youtube.com/watch?v=rU232NPDVtQ&list=PL89BA3B68F463D809&index=1&feature=plpp_video

www.helsinki.fi/yliopisto

The Reference Budgets

• RB’s are list of goods and services that a family of specified size andcomposition would need to live at a designated level of well-being togetherwith the estimated annual or monthly costs of those goods and services.

• A commodity basket includes all consumption items required to attain andmaintain a certain standard of living.

• First RBs in 2010, updating in 2013 and 2015 by CPI

Aim of the study1. Revise the contents of existing nine commodity baskets for reference

households2. Extend the budgets by two reference households3. Update the prices

16.9.2016Consumer society research centre, Lehtinen & Aalto


Basis for commodity baskets

Starting point of decent minimum RBs• What kind of consumption is required to maintain individuals’

physical and mental health and provide them the possibility offull participation in the prevalent way in today’s (Finnish)society?

Needs, capabilities, participation, consumption:• Sen’s (1985,1993) capability approachØ means and opportunities, central capabilities (Nussbaum 2011)• A theory of human need by Doyal & Gough (1991)Ø basic needs, intermediate needs



Compiling Decent Minimum ReferenceBudgets

16.9.2016 4Consumer society research centre, Lehtinen & Aalto

• Consumers participate in the development of commody basketsalongside reseachers and experts.

• Focus group discussions with consumers and experts andhomeworks for consumers; content analysis

• Main stages:1) defining the content of commodity baskets (consumers),2) pricing the commodites (researches),3) evaluating and checking (consumers, experts)


Decent minimum consumption in 2010


• Food: Proper, nutritious food regularly; lunch with colleagues, eating out with familyand friends occasionally; based on food diaries, nutritional recommendations

• Clothing: Decent, suitable for various situations, no second hand, no fashionableclothing; supermarket prices; women, men and children have separated budgets

• Transport: A possibility to move/travel; regional diffrencies, equality, mainly publictransport; everyone has a bicycle; own car for families with children and rural areas

• Housing, household movables: Rented flat; cosy, functional home, possible toinvite guests

• Information technology: staying informed, managing things, participation,awareness, to be part of society, a must: self-service (banking, authorities),ownership: privacy, if not, other costs increases

• Health and hygiene: household members are in good health, everyone shouldenhance his/her personal health via exercise, training and nutritional food

• Leisure: possibility to social participation, freedom of choice, childrens’ leisure time


RBs per month in various household typesin 2015

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Conclusion

• RBs for different reference households which covers all theessential household expenditures.

• RB is not an exact bordeline but contents and unique contexts:living patterns, life situations, experiences, knowledge and skills..

RBs have raised• discussion of decent consumption• interest of private persons (divorce, living costs).

RBs have used in• an overall evaluation on the sufficiency of basic benefits in

Finland; every fourth year• research; carbon footprint calculations• counselling, loan negations and teaching.



Publications

Lehtinen A-R, Varjonen J, Raijas A, Aalto K (2011) Reference budgets for the decentminimum standard of living. National Consumer Research Centre. Working papers 132.https://helda.helsinki.fi/handle/10138/152355

Lehtinen A-R, Varjonen J, Raijas A, Aalto K, Pakoma R (2010)Mitä eläminen maksaa? Kohtuullisen minimin viitebudjetit. Kuluttajatutkimuskeskus,Helsinki. Julkaisuja, 4/2010. https://helda.helsinki.fi/handle/10138/152360

Pakoma R. Mitä syöminen maksaa? Kuluttajien näkemyksien pohjalta laadittu kohtuullisenminimin ruokabudjetti. Kuluttajatutkimuskeskus. Työselosteita ja esitelmiä 126/2010.https://helda.helsinki.fi/handle/10138/152366

Lehtinen A-R, Varjonen J, Aalto K (2013) Konsensusmenetelmän ja kuluttajalähtöisyyden edutkohtuullisen kulutuksen määrittelyssä. Teoksessa:O Kangas, M Niemelä, A Raijas (toim.) Takaisin perusteisiin: perusturvan riittävyyskulutuksen näkökulmasta (s. 82–101). Helsinki: Kela. Teemakirja 2013; (12).https://helda.helsinki.fi/bitstream/handle/10138/42400/Takaisin+perusteisiin.pdf?sequence=1

Lehtinen A-R, Aalto K (2014) Viitebudjettien päivitys vuodelle 2013 –Mitä kohtuullinen eläminen maksaa? Kuluttajatutkimuskeskus, Helsinki.Julkaisuja, 3/2014. (hinnat päivitetty 11.4.2016 vuodelle 2015)https://helda.helsinki.fi/handle/10138/152407


https://helda.helsinki.fi/handle/10138/152355



https://helda.helsinki.fi/bitstream/handle/10138/42400/Takaisin+perusteisiin.pdf?sequence=1


Thank you!

[email protected]@helsinki.fi


RBs per month in various household typesin 2015 (in Helsinki)


a car isincluded


Reference budgets

”Drawing up inventories of highly specified items, giving numbers to them,

allocating lifetimes, processing them and putting them into lists,

incorporating them in the budget and adding them up, is time consuming,

tedious and unexiting job….It is far more demanding than secondary data

analysis and probably as demanding as survey research. It is big social

science, it takes considerable effort, expertice, and imagination. ”

(Bradshaw 1993)


the revised finnish reference budgets

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