scholarly journals HOUSEHOLD FOOD DEMAND IN INDONESIA: A TWO-STAGE BUDGETING APPROACH

2016 ◽  
Vol 31 (1) ◽  
pp. 163
Author(s):  
Agus Widarjono ◽  
Sarastri Mumpuni Rucbha

A two-stage budgeting approach was applied to analyze the food demand in urban areas separated by geographical areas and classified by income groups. The demographically augmented Quadratic Almost Ideal Demand System (QUAIDS) was employed to estimate the demand elasticity. Data from the National Social and Economic Survey of Households (SUSENAS) in 2011 were used. The demand system is a censored model because the data contains zero expenditures and is estimated by employing the consistent two-step estimation procedure to solve biased estimation. The results show that price and income elasticities become less elastic from poor households to rich households. Demand by urban households in Java is more responsive to price but less responsive to income than urban households outside of Java. Simulation policies indicate that an increase in food prices would have more adverse impacts than a decrease in income levels. Poor families would suffer more than rich families from rising food prices and/or decreasing incomes. More importantly, urban households on Java are more vulnerable to an economic crisis, and would respond by reducing their food consumption. Economic policies to stabilize food prices are better than income policies, such as the cash transfer, to maintain the well-being of the population in Indonesia Keywords: Urban, Two-Stage Budgeting, QUAIDS, Price and Income elasticity 

2014 ◽  
Vol 14 (62) ◽  
pp. 8748-8760
Author(s):  
TR Iorlamen ◽  
◽  
GA Abu ◽  
WL Lawal

The study assessed expenditure on food among urban households in Benue State of Nigeria. This was done with the view to assess household food expenditure and its implications for food security status of the households; identify and assess determinants that influence household food demand; and analyze the determinants of food security of household urban population. The selection of the sample for the study involved a three-stage sampling technique. Data was collected from 150 households through a structured questionnaire. Descriptive statistics, food security index, multiple linear regression and logit regression were employed to analyze data. The results indicated a mean household expenditure on food that stands at N21,748.00 40.3 USD) per month. Based on the food security index the households that spent at least N14, 498.67 (93.5 USD) on food per month were categorized as food secure and those who spent below this value were categorized as food insecure. Furthermore, 67.3% of the households were food secure, while 32.7% were food insecure. The study revealed that size of household, income of the household head and price of food comodities were identified as major factors influencing household food demand decisions in the study area. Moreover, size of the household and income of the household head were the main determinants of food demand in the study area (F = 19.78; p ≤ 0.05) just as age and income of household head as well as household size influence the probability that a household will be food secure(χ2 = 13.77; p > 0.05). The study recommends that household heads should be educated on the need to control family size and to be self-empowered without necessarily depending on government as a way of enhancing their income to improve the household and economic conditions. The government should strengthen its policy on grain reserves in order to control food prices during scarcity and subsidize farm i nputs and availability to boost food production and thus lower food prices.


2020 ◽  
Vol 5 (12) ◽  
pp. 256-265
Author(s):  
Faiqoh Amalina ◽  
Ratya Anindita ◽  
Abdul Wahib Muhaimin

The efforts of the Government in food diversification of rice to local food thus generating household conditions that tend to switch to wheat consumption compared to local commodities. So the necessary analyse to look at preferences in consuming the food commodities. Besides seeing the influence of price changes and the expenditure against the demand for food as the evaluation of food diversification successfully implemented. This analysis were using Susenas data (2016) analyzed by the Linear Approximation/Almost Ideal Demand System (LA/AIDS) model. The results of the analysis note that the highest preference is present on rice and flour, seen from the amount of consumption as well as the proportion of its expenditure. The results of the demand elasticity indicates that diversifies effort still hadn't done very well because there were still a dependency of the rice. So that the effort to maintain the affordability of the rice should still be enacted.


2021 ◽  
Vol 70 (1) ◽  
pp. 49-62
Author(s):  
Jonas Peltner ◽  
Silke Thiele

This paper presents price and income elasticities of food demand for Germany. Using disaggregated household scanner data and the Quadratic Almost Ideal Demand System (QUAIDS). The QUAIDS is modified to account for censoring and include household demographics. Furthermore, a two-stage budgeting approach is used to more accurately reflect households’ purchasing behaviour. Having disaggregated data also allowed to include convenience aspects into the demand system. High expenditure elasticities are found for fruits and nuts and meat, fish and eggs. The highest own-price elasticity is found for beverages. At the second stage, the bread toppings group reveals new insights into demand relations between cold cuts, cheese and other spreads. Cold cuts have both the highest expenditure and own-price elasticity. Cross-price elasticities indicate mostly complementary relations between cold cuts and other bread toppings. Comparing different income groups shows that expenditure elasticities of raw foods or basic ingredient foods tend to decrease as income increases, whereas expenditure elasticities of foods that require minimal or no preparation tend to increase with income. In conclusion, this study stresses the need for regularly updated elasticities of food demand that reflect up-to-date consumption behavior.


2021 ◽  
Vol 13 (2) ◽  
pp. 97-105
Author(s):  
Doppy Roy Nendissa ◽  
Ratya Anindita ◽  
Nikmatul Khoiriyah ◽  
Ana Arifatus Sa’diyah

Households consume animal protein after carbohydrate food is fulfilled, moreover animal protein prices are increasing. This study aims to analyze the effect of rising beef prices on demand. The demand system approach uses the Quadratic Almost Ideal Demand System (QUAIDS) model. Estimation of parameters using Iterated non-linear Seemingly Unrelated Regression. The research data use the 2016 National Socio-Economic Survey (Susenas, 2016), amounting to 10,751 households. The results of the study concluded that beef is the third most elastic animal food after fresh fish and chicken meat. Fresh fish in the most elastic among all animal foods with a demand elasticity of 3.31%, followed by chicken, beef, milk powder, and eggs with demand elasticities of 1.55%, 1.62%, 1.29%, and 0.80%, respectively. Beef is a luxury item with an income elasticity of 1.59%, as well as fresh fish, chicken meat, and milk powder. While eggs are normal goods. Although fresh fish is more elastic than beef, beef marginal expenditure share (MES) is higher than fresh fish MES, so that in the long run, the increase in household income tends to increase beef consumption more than fresh fish.


2021 ◽  
pp. 1-27
Author(s):  
Juliana Londoño-Vélez ◽  
Pablo Querubín

Abstract We study the impact of money on households during theCOVID-19 pandemic. In March 2020, Colombia rolled out a new unconditional cash transfer (UCT) to one million households in povertyworth $19 (PPP $55.6) and paid every 5-8 weeks. Using an RCT and linked administrative and survey data, we find the UCT had positive (albeit modest) effects on measures of household well-being (e.g., financial health, food access). Moreover, the UCT boosted support for emergency assistance to households and firms during the crisis and promoted social cooperation. Finally, we explore the bottlenecks in expanding mobile money during a pandemic.


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