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Estimating demand for food commodities by income groups in Indonesia

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  • Jensen, Helen
  • Manrique, Justo

Abstract

An analysis of the structure of demand was performed on household data, classified into income groups for urban Indonesia. A demographically augmented Linearized Almost Ideal Demand System was used to estimate the structural parameters of the demand equations. Endogenous switching regressions techniques yielded unbiased and consistent demand parameter estimates for the low income group, which had a large number of zeros for some food groups. Standard seemingly unrelated equation techniques were used to estimate the demand parameters for the other income groups. The results showed demands for the medium-high and high income households to be responsive to prices, income and demographic variables. Demands for the medium-low income households were responsive to income and prices only. Demands for lowincome households were responsive to income and prices of rice and fish only.

Suggested Citation

  • Jensen, Helen & Manrique, Justo, 1993. "Estimating demand for food commodities by income groups in Indonesia," UC3M Working papers. Economics 2901, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:2901
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    Cited by:

    1. Laajimi, A. & Albisu, L. M., 1997. "La demande de viandes et de poissons en Espagne : une analyse micro-économique," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 42.

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    Keywords

    Endogenous Switching Regressions;

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