Agricultural Households’ Food Demand: Evidence from Indonesia

Faharuddin,; Yunita, .; Mulyana, Andy; Yamin, Muhammad

doi:10.37801/ajad2019.16.2.3

Cited by 7 publications

(10 citation statements)

References 15 publications

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“…Using duality theory, it is possible to create another demand function that maximizes output while minimizing spending at a given level of spending. The amount of consumer happiness is an obstacle [24,25]. In 1980, two researchers created a model of the AIDS demand function from this formulation (Almost Ideal Demand System).…”

Section: Literature Review and Problem Statementmentioning

confidence: 99%

Implementation of demand system restrictions and accuracy of QUAIDS model estimator on animal food demand in Indonesia

Iriany

Sui²,

Anindita

et al. 2022

EEJET

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Demonstration on restrictions and accuracy of an estimator is pivotal since the incomplete restrictions will make the estimator inaccurate that they cannot be used for the need of decision making. In this study, the demand system’s three primary requirements-adding up, homogeneity, and symmetry ‒ are examined. This current research was intended to demonstrate restrictions and accuracy of Quadratic Almost Ideal Demand System (QUAIDS) model estimator. The source of the data was referred to the results of National Socio-Economic Survey of Indonesia in 2016, involving 291,414 households in total. Iterated Nonlinear Seemingly Unrelated Regression method was used for the estimation procedure. Parameter estimation is used to calculate the elasticity of animal protein. The results have indicated that the three restrictions of the QUAIDS model estimator, i. e. adding up, homogeneity, and symmetry, have been completed. Further, the estimation made by the QUAIDS model is valid and efficient; therefore, the estimation is potentially used as a means of calculating own and cross price elasticity, either Marshallian or Hicksian. In addition, some other parameters, such as price, income, and income squared, are also employed to calculate income elasticity. The findings show that demand is elastic for all animal proteins, except for eggs, which are inelastic. Beef is most elastic. According to the income elasticity results, all animal proteins are considered luxury foods in Indonesia, except for eggs, which have an income elasticity of less than one. To fulfill Indonesian households’ needs for animal protein, the income policy is more suited for beef, while the price strategy is more effective for animal proteins including chicken, milk, fresh fish, and eggs

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Section: Literature Review and Problem Statementmentioning

confidence: 99%

Implementation of demand system restrictions and accuracy of QUAIDS model estimator on animal food demand in Indonesia

Iriany

Sui²,

Anindita

et al. 2022

EEJET

View full text Add to dashboard Cite

show abstract

“…Beberapa penelitian menjelaskan bahwa pola konsumsi makanan di negara berkembang umumnya didominasi oleh konsumsi bahan makanan pokok (Alexandri et al, 2015;Le, 2008;Dona et al, 2018;Olubukunmi et al, 2016). Hingga saat ini, Indonesia memiliki pola konsumsi yang sama dengan negara berkembang lainnya, bahkan nilai dari pengeluaran yang digunakan untuk membelanjakan bahan makanan pokok lebih dari 40% dari pendapatannya (Faharuddin et al, 2019).…”

Section: Penelitian Terdahuluunclassified

Analisi Pola Konsumsi Pangan Pokok Rumah Tangga di Indonesia Tahun 2000-2014

Firdauzi

2021

JEI

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Pangan merupakan masalah serius yang dihadapi Indonesia setiap tahunnya. Selain kontribusinya yang besar terhadap Produk Domesti Bruto, pangan juga berkaitan dengan kesejahteraan, kemiskinan dan standar hidup bagi masyarakat Indonesia sehingga perubahan pola konsumsi masyarakat dapat mengubah perekonomian Indonesia dan kesejahteraan masyarakatnya. Penelitian ini bertujuan untuk menganalisis pola konsumsi pangan di Indonesia menggunakan data pooled cross section dengan rentang waktu antara tahun 2000 hingga 2014. Metode yang digunakan adalah Quadratic Almost Ideal Demand System (QUAIDS). Hasil analisis menunjukkan bahwa pola konsumsi di Indonesia masih didominasi oleh beras. Perubahan pendapatan maupun perubahan harga komoditas lebih responsif pada rumah tangga miskin dimana ketika terjadi kenaikan pendapatan persentase konsumsi mereka akan meningkat, dan ketika terjadi kenaikan harga komoditas akanmenurunkan konsumsi mereka secara besar-besaran.

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“…The AIDS model in equation ( 6), therefore, is a censor demand system model. In the censored AIDS model, the adding-up condition does not hold in the demand system of equation (6). Therefore, following Yen et al (2002), we should estimate an entire system equation in equation (6) in the second step by putting a restriction on homogeneity and symmetry conditions.…”

Section: Demographicmentioning

confidence: 99%

“…In the censored AIDS model, the adding-up condition does not hold in the demand system of equation (6). Therefore, following Yen et al (2002), we should estimate an entire system equation in equation (6) in the second step by putting a restriction on homogeneity and symmetry conditions. This consistent two-step (CTS) estimation is estimated using the maximum information likelihood (FIML) (Zheng and Henneberry, 2010; Widarjono and Rucbha, 2016).…”

Section: Demographicmentioning

confidence: 99%

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Demand for Meat in Indonesia: Censored AIDS Model

Widarjono

Ruchba

2021

AOL

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This study estimates the demand for meat in Indonesian urban households encompassing beef, goat, broiler chicken, and native chicken. We estimate the demand for meat using cross-sectional data from the 2013 Indonesian Socio-Economic Household Survey data, which records food expenditure for a week before the survey. Because of some zero expenditure, the Censored Almost Ideal Demand System (AIDS) using the consistent two-step estimation is applied. The estimated own-price elasticities indicate that all meat products are price-inelastic. Nonetheless, broiler chicken is the most responsive meat product while goat is the least responsive meat product to price changes. All meat products are normal good referring to the estimated income elasticities. However, Native chicken is the most responsive and goat is the most unresponsive to the income change. The estimated cross-price elasticities conclude that broiler chicken and beef are substitute goods. The policy simulation indicates that beef is a meat product that is unresponsive to price and income changes. Native chicken is the most responsive meat product to price and income change, followed by broiler chicken.

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Agricultural Households’ Food Demand: Evidence from Indonesia

Cited by 7 publications

References 15 publications

Implementation of demand system restrictions and accuracy of QUAIDS model estimator on animal food demand in Indonesia

Implementation of demand system restrictions and accuracy of QUAIDS model estimator on animal food demand in Indonesia

Analisi Pola Konsumsi Pangan Pokok Rumah Tangga di Indonesia Tahun 2000-2014

Demand for Meat in Indonesia: Censored AIDS Model

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