Analysis Food Demand of Java Households with Aids Model Estimates

<p>The quantity and quality of food consumed by the community are determined by the price level and household income. Household food expenditure share is still dominated by rice commodities. The aims of this study are 1) to analyze the level of household expenditure on food in Java and (2) to analyze the expenditure elasticity and price elasticity of household food demand in Java. The data used was March 2015, 2016, and 2017 SUSENAS data. Household consumption data was estimated using the AIDS Model. The results showed that household food expenditure share for medium and low-income groups (Q3 and Q4) for urban and rural areas was more than 50 percent. This shows that the household is food insecure. The own-price elasticity for all commodities is negative and inelastic. Changes in food prices do not significantly affect changes in demand for food commodities because their elasticity is inelastic. Household food demand is more influenced by food prices than household income for food commodities except for rice commodities. Rice has elastic expenditure elasticity (means that food demand is very responsive to changes in household expenditure/income. The relationship between each commodity is almost entirely negative (complementary).</p>

A COMPARATIVE STUDY ON HOUSEHOLD EDUCATIONAL EXPENDITURE IN PAKISTAN: A MESSAGE FORWARD

This comparative study aims to examine household educational expenditure in Pakistan. The data was collected from Pakistan household budget surveys 2013-14, 2015-16 and 2018-19. To meet the objectives of study, descriptive, two sample t-test and Working-Leser model through econometric regression were performed for the confirmation of hypotheses. Results of the study show that educational expenditure increased from US$213.29 household-1 in 2013-14 to US$280.94 household-1 in 2015- 16 and there is obtained slightly increased in educational expenditure (i.e., from US$280.94 household-1 to US$281.06 household-1 ) from 2015-16 to 2018-19. A significant increase in household educational expenditure in Sindh and Khyber Pakhtunkhwa provinces obtained while educational expenditure of households belongs to Balochistan decreased (i.e., from US$211. 94 household-1 in 2015 to US$128.76 household-1 in 2018). There is obtained positive and statistically significant impact of logarithm income on budget shares of education. Education expenditure elasticity turns out greater than one, which advocates households treat education as expensive one. Findings of study reveals that expenditure on fees and books accounts for more than 80 per cent share of household total educational expenditure. Keeping in view the findings of study, some lucrative policies are recommended for educational development at household level in Pakistan.

Analysis of the Demand for Berries in Mexico: An Application of the Almost Ideal Demand System (AIDS) Model

Objective: To identify the factors affecting the demand for berries in Mexican households, as well as the behavior in face of variations in economic income. Design/Methodology/Approach: In order to analyze the demand, microdata were used from the National Income-Expenditure Survey of Households 2018 (Encuesta Nacional Ingreso Gasto de los Hogares, ENIGH) from the National Institute of Statistics and Geography (Instituto Nacional de Estadística, Geografía e Informática, INEGI), and for its modelling the Almost Ideal Demand System (AIDS) model was used. Results: Because of their Marshallian elasticity, berries are an elastic good (-1.0316), and because of their expenditure elasticity they are a luxury good (1.0691). In terms of crossed Marshallian elasticities, sweet fruits and sugary beverages were identified as substitute goods with elasticity of 0.0013 and 0.0380, respectively, while semi-acid fruits and melons would be complementary goods, with elasticities of -0.0191 and -0.0184, respectively. Study Limitations/Implications: Given that most of the time series of the berries lack disaggregation and sufficient information, it is difficult to analyze each component of the group separately; therefore, it was decided to analyze the group of berries and its relationship with other goods; in addition, the ENIGH database was selected, which provides more information. Conclusions: There are state differences in the response to changes in prices and income with regard to the demand for berries, so that facing a generalized increase in household income consumption would increase much more in the center of the country than in the south-southeast.

Posisi Kopi Robusta Indonesia di Pasar Jerman Menggunakan Metode Linear Approximate Almost Ideal Demand System

Indonesia is one of the top coffee producers in the world. The major markets for Indonesian coffee are European Union (EU), then Germany is the largest importing country. This research analyzed the position for Indonesian robusta coffee in Germany among Vietnam and India as the major producers of robusta coffee as Indonesia. The econometric model of the Linear Approximate Almost Ideal Demand System was used to estimate a position for Indonesian robusta coffee among its competitors. The analysis utilized time-series data from 1996 to 2017. The results of the study showed that the main exporting countries, including Indonesia, tended to have lower import tariffs than other countries, not the main exporters. The demand for imported coffee beans was generally influenced by the prices of major exporters, but demand for imported roasted coffee was not affected by the prices of major importing countries. Indonesian coffee beans in the German market was elastic, while roasted coffee was inelastic. Indonesian coffee competed with Vietnam both for coffee beans and roasted coffee. The expenditure elasticity of Indonesian coffee beans was positive and Indonesian roasted coffee was negative.

An Analysis of Household Foods Demand in Rural Burundi

This study was aimed to investigate the roles of income and other socioeconomic variables such as household size, land size, head of household education level, raising the animals, source of income on food demand in rural Burundi. The demands for food and nutrients among the households in rural Burundi were examined using a recent survey done by the authors. An almost ideal demand system (AIDS) was employed to estimate the price and expenditure elasticities and the impact of socioeconomic variables on food demand patterns. An econometric model was then used to analyze the determinants of food demand. The estimated expenditure elasticities for the food groups range from 0.64 for oils to 1.36 for meats. These outcomes showed that there is a higher expenditure elasticities for meats, fish, and animal products, as well as cereals and grains. The results showed that the income and other socioeconomic variables exerted significant effects on food demand. The income and other socioeconomic variables exerted a significant impact on the food demand, and higher expenditure elasticity for food group items will increase remarkably with rising income.

Demand Analysis for Solid Fuel and Its Substitutes as Domestic Energy in Imo State, Nigeria

Purpose: This study aims to model the demand analysis for solid fuel and its substitute for domestic cooking energy among households in Imo State. Methods: Data on socio-economic characteristics of the respondents, monthly expenditure on energy used for domestic cooking, unit prices, and quantity of different energy sources were collected using a multi-stage sampling technique from 262 households I Imo State. Data were analyzed using descriptive, quartile distribution and QUAIDS inferential statistics to achieve the objectives of the study. Results: The empirical analysis of the demand for household energy usage revealed that the quadratic expenditure term is statistically significant in firewood, sawdust, and wood-shaving expenditure share equations. It implies that their null hypothesis of expenditure linearity is strongly rejected. Furthermore, the prices and demographics of the household head significantly influence the budget shares of the different energy used. Expenditure elasticity of all the energy sources are elastic. Own price (Marshallian and Hicksian) of firewood, sawdust, and kerosene are price elastic while charcoal and wood-shaving are price inelastic. The Uncompensated Marshallian's cross elasticity of almost all energy sources are complementary. However, the result of the compensated- Hicksian's cross elasticity values indicated that almost all the energy uses are substitutable except for firewood – charcoal, firewood-wood shaving, firewood-kerosene, and sawdust-wood shaving that are complementary. Implications: The result indicates that the timber products and its substitutes demand domestic cooking follow both energy ladder and stacking principles as households can quickly switch to a better energy source at the same time exhibit their dynamism in the ability to combine both traditional and modern fuels to meet their domestic energy needs based on price and affordability. The study, therefore, recommends that younger females in the household should be targeted in demonstrating the demand for cleaner energy using educational facilities and reduction in unit prices of such energy in the area.

Finding correct elasticities in log-linear and exponential models allowing heteroskedasticity

Log-linear models are popular in practice because the slope of a log-transformed regressor is believed to give an unit-free elasticity. This widely held belief is, however, not true if the model error term has a heteroskedasticity function that depends on the regressor. This paper examines various mean – and quantile-based elasticities (mean of elasticity, elasticity of conditional mean, quantile of elasticity, and elasticity of conditional quantile) to show under what conditions these are equal to the slope of a log-transformed regressor. A particular attention is given to the ‘elasticity of conditional mean (i.e., regression function)’, which is what most researchers have in mind when they use log-linear models, and we provide practical ways to find it in the presence of heteroskedasticity. We also examine elasticities in exponential models which are closely related to log-linear models. An empirical illustration for health expenditure elasticity with respect to income is provided to demonstrate our main findings.

Price and expenditure elasticity of cigarette demand in El Salvador: a household-level analysis and simulation of a tax increase

BackgroundIn El Salvador, 8.8% of adults 15 years and older smoke cigarettes. Little is known about the sensitivity of cigarette consumption among the adults in El Salvador to tax and price increases and income growth.MethodsElasticities are estimated using Deaton’s Almost Ideal Demand System model applied to data from the National Household Income and Expenditure Survey 2005/2006 for the total population and separately for income groups. The estimates are then used to simulate the effects of a proposed change in tobacco tax policy on cigarette consumption and tax revenue.FindingsThe estimated price elasticities (−0.77 for the total population) are within the range of price elasticity estimates available for low and middle-income countries. Given the estimated elasticities, a tobacco tax increase is expected to reduce the number of smokers (by almost 20%) and increase tobacco tax revenue (by more than 50%).ConclusionsIncreasing tobacco taxes has the potential to decrease consumption in El Salvador and raise fiscal revenues. The tobacco tax burden in El Salvador is one of the lowest in Latin America and the social costs of tobacco consumption largely exceed the tobacco tax revenues. An increase in tobacco tax could significantly decrease the number of smokers and reduce the burden of tobacco-related diseases and deaths.