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Unit Value Biases in Meat Demand in Indonesia

  • Olivia, Susan
  • Gibson, John

Indonesia is an emerging market for beef and cattle exports so estimates of income and price elasticities may help analysts predict future demands. In contrast to developed countries, where meat demand studies often use aggregate data, Indonesian studies rely on household surveys, with unit values (ratios of expenditures to quantities) used instead of market prices. Elasticities estimated from unit values can be subject to various quality and measurement error biases. In this paper, data from 29,000 households on Java are used to estimate a demand system for beef, chicken and other meat groups, and the extent of bias from commonly used estimation strategies is evaluated.

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Paper provided by Australian Agricultural and Resource Economics Society in its series 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia with number 58195.

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Date of creation: Feb 2003
Date of revision:
Handle: RePEc:ags:aare03:58195
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  1. Helen Jensen & Justo Manrique, 1998. "Demand for food commodities by income groups in Indonesia," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 491-501.
  2. Minot, Nicholas W, 1998. "Distributional and Nutritional Impact of Devaluation in Rwanda," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 379-402, January.
  3. Hahn, William F., 1994. "A Random Coefficient Meat Demand Model," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 3.
  4. Sakong, Yong & Hayes, Dermot J., 1993. "Testing the Stability of Preferences: A Nonparametric Approach," Staff General Research Papers 558, Iowa State University, Department of Economics.
  5. Eales, James S. & Roheim, Cathy A., 1999. "Testing Separability Of Japanese Demand For Meat And Fish Within Differential Demand Systems," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
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