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Demand for food commodities by income groups in Indonesia

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  • Jensen, Helen H.
  • Manrique, Justo

Abstract

An analysis of the structure of demand was performed on household data, classified into income groups for urban Indonesia. A demographically augmented linearized almost ideal demand system was used to estimate the structural parameters of the demand equations. Endogenous switching regression techniques yielded unbiased and consistent demand parameter estimates for the low-income group, which had a large number of zeros for some food groups. Standard seemingly unrelated equation techniques were used to estimate the demand parameters for the other income groups. The results showed demands for the medium to high- and high-income households to be responsive to prices, income and demographic variables. Demands for the medium to low-income households were responsive to income and prices only. Demands for low-income households were responsive to income and prices of rice and fish only.

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  • Jensen, Helen H. & Manrique, Justo, 1998. "Demand for food commodities by income groups in Indonesia," ISU General Staff Papers 199801010800001587, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199801010800001587
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    2. Agus Widarjono, 2012. "An analysis of protein and calorie consumption in Central Java," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(2), pages 115-126, April.
    3. Briggs, Adam & Chowdhury, Shyamal, 2014. "Economic Development, Food Demand and the Consequences for Agricultural Resource Requirements (Indonesia)," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165808, Australian Agricultural and Resource Economics Society.
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    5. Yamauchi, Futoshi & Larson, Donald F., 2019. "Long-term impacts of an unanticipated spike in food prices on child growth in Indonesia," World Development, Elsevier, vol. 113(C), pages 330-343.
    6. Xin Gu & Zhang-Yue Zhou & Yan-Rui Wu, 2019. "Understanding China’S Urban Consumption Patterns: New Estimates And Implications," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 961-981, September.
    7. Andi Syah Putra & Guangji Tong & Didit Okta Pribadi, 2020. "Food Security Challenges in Rapidly Urbanizing Developing Countries: Insight from Indonesia," Sustainability, MDPI, vol. 12(22), pages 1-20, November.
    8. Goksel Armagan & Cuma Akbay, 2008. "An econometric analysis of urban households' animal products consumption in Turkey," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 2029-2036.
    9. Pangaribowo, Evita Hanie & Tsegai, Daniel W., 2011. "Food Demand Analysis of Indonesian Households with Particular Attention to the Poorest," Discussion Papers 116748, University of Bonn, Center for Development Research (ZEF).
    10. A., Laajimi & L. M., Albisu, 1997. "La demande de viandes et de poissons en Espagne : une analyse micro-économique," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 42, pages 71-91.
    11. Olivia, Susan & Gibson, John, 2003. "Unit Value Biases in Meat Demand in Indonesia," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58195, Australian Agricultural and Resource Economics Society.
    12. Andrea Saayman & Isabel Cortés-Jiménez, 2013. "Modelling Intercontinental Tourism Consumption in South Africa: A Systems-of-Equations Approach," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 538-560, December.
    13. Pan, Suwen & Jensen, Helen H., 2002. "Eating Out: An Important Source Of Food For The Poor And The Food Insecure," 2002 Annual meeting, July 28-31, Long Beach, CA 19805, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Gibson, John & Rozelle, Scott, 2002. "Demand Systems With Unit Values: Comparisons With Elasticities from Market Prices," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 173980, Australian Agricultural and Resource Economics Society.
    15. Aliakbar KHOSRAVINEJAD, 2008. "Welfare Effects of Food Desubsidization For Iranian Urban Households (The Index Number and Demand System Approach)," EcoMod2008 23800063, EcoMod.
    16. Olivia, Susan & Gibson, John, 2005. "Unit Value Biases in Price Elasticities of Demand for Meat in Indonesia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    17. Johan Lundberg & Sofia Lundberg, 2012. "Distributional Effects of Lower Food Prices in a Rich Country," Journal of Consumer Policy, Springer, vol. 35(3), pages 373-391, September.
    18. Huffman, Sonya Kostova, 2001. "Welfare And Labor Force Participation Of Low-Wealth Families: Implications For Labor Supply," 2001 Annual meeting, August 5-8, Chicago, IL 20609, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Joey Blumberg & Gary Thompson, 2022. "Nonparametric segmentation methods: Applications of unsupervised machine learning and revealed preference," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 976-998, May.
    20. Seher ERSOY QUADIR & Didem ?NAY DER?N & Mehmet AKMAN, 2015. "An Examination of Household Poverty Affecting Food Insecurity in Turkey (Mu? Province)," Journal of Social Science Studies, Macrothink Institute, vol. 2(1), pages 186-208, January.
    21. Rulof Petrus Burger & Lodewicus Charl Coetzee & Carl Friedrich Kreuser & Neil Andrew Rankin, 2017. "Income and Price Elasticities of Demand in South Africa: An Application of the Linear Expenditure System," South African Journal of Economics, Economic Society of South Africa, vol. 85(4), pages 491-514, December.

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