Unit Value Biases in Meat Demand in Indonesia
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.
|Date of creation:||Feb 2003|
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