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Household Demand for Food Prepared at Home and Food Away from Home in Indonesia

Author

Listed:
  • Ratih Damayanti

    (Indonesia Statistics)

  • Chaikal Nuryakin

    (Universitas Indonesia)

  • Pyan Amin Muchtar

    (Australian National University)

Abstract

This study aims to analyze the demand for food among Indonesian households, consisting of foods prepared at home (FPAH) and food away from home (FAFH). Utilizing longitudinal data from the National Socioeconomic Survey 2011-2013, combined with the Village Potential Statistics, the study estimates the demand with the Linear Approximated Almost Ideal Demand System (LA/AIDS). The results show that both FPAH and FAFH are normal goods but FAFH is more elastic than FPAH. Additionally, in terms of income elasticity, we found that households show stronger responses in consump- tion on FAFH, compared to FPAH. We also present heterogeneity analysis on different types of household characteristics.

Suggested Citation

  • Ratih Damayanti & Chaikal Nuryakin & Pyan Amin Muchtar, 2023. "Household Demand for Food Prepared at Home and Food Away from Home in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 69, pages 35-46, Juni.
    • Handle: RePEc:lpe:efijnl:202303
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    References listed on IDEAS

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    2. Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 1992. "Analysis Of Food Away From Home And Food At Home Consumption: A Systems Approach," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(3), pages 1-10, September.
    3. Ana M. Angulo & José M. Gil & Jesús Mur, 2007. "Spanish Demand for Food Away from Home: Analysis of Panel Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 289-307, June.
    4. Cai, Yongxia & Alviola, Pedro A. & Nayga, Rodolfo M. & Wu, Ximing, 2008. "The Effect of Food-Away-from-Home and Food-at-Home Expenditures on Obesity Rates: A State-Level Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(2), pages 507-521, August.
    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    More about this item

    Keywords

    household demand; food prepared at home; food away from home;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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