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Demand Systems from Cross Section Data: An Experiment for Indonesia

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  • Tesfaye Teklu
  • Stanley R. Johnson

Abstract

A linear version of the Almost Ideal Demand System and the Multinomial Linear Logit Model are used to estimate Indonesia's food demand system in order to support policy analysis for Indonesia's five-year plan. The resulting estimated elasticities vary significantly across economic levels. These elasticities are evaluated and compared with other studies in Indonesian and other selected Asian countries. Policy reforms targeted to changing food prices will cause predictable results.

Suggested Citation

  • Tesfaye Teklu & Stanley R. Johnson, 1987. "Demand Systems from Cross Section Data: An Experiment for Indonesia," Center for Agricultural and Rural Development (CARD) Publications 87-wp24, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:87-wp24
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