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How to Ease the Burden of Poor Household ? : The Role of Raskin Program

Author

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  • Sartika Djamaluddin

    (Department of Economics, Faculty of Economics and Business, University of Indonesia)

Abstract

The aims of this study is to investigate whether Raskin program can ease the burden of rice expenditure of poor household. The investigation are based on expenditure analysis. This research uses the National Socio-Economic Survey (Susenas) data on households with 15,852 observations. Regression in all region indicates that Raskin program are significant to ease the burden of rice expenditure but the effect is relatively small. In the regions where the percentage Raskin was lower than rice expenditure, Raskin expenditure can ease the burden of rice expenditure but the efeect is very small so we did not found significant evidence. Nevertheless in the province of Maluku, Papua and Papua barat, where the percentage Raskin was higher than the rice expenditure, the role of Raskin actually increase rice spending. However, the effect is relatively small so that there the effect is not significant. In addition, the Raskin program also consequently causes the households' total expenditures to increase. One of such causes is increased expenditures for foodstuffs containing meat and non-meat, and fruits.

Suggested Citation

  • Sartika Djamaluddin, 2015. "How to Ease the Burden of Poor Household ? : The Role of Raskin Program," Working Papers in Economics and Business 201501, Faculty of Economics and Business, University of Indonesia, revised Mar 2015.
    • Handle: RePEc:lpe:wpecbs:201501
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    References listed on IDEAS

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    1. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 109-139, October.
    2. Slesnick, Daniel T, 1996. "Consumption and Poverty: How Effective Are In-Kind Transfers?," Economic Journal, Royal Economic Society, vol. 106(439), pages 1527-1545, November.
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    Cited by:

    1. Phadera,Lokendra & Sharma,Dhiraj & Wai-Poi,Matthew Grant, 2020. "Iraq's Universal Public Distribution System : Utilization and Impacts During Displacement," Policy Research Working Paper Series 9155, The World Bank.
    2. Gupta, Prachi & Huang, Bihong, 2018. "In-Kind Transfer and Child Development: Evidence from Subsidized Rice Program in Indonesia," ADBI Working Papers 826, Asian Development Bank Institute.

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    More about this item

    Keywords

    raskin program; in-kind transfer; household; consumption;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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