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Abstract
Non poor rural households are households that have a minimum income of Rp. 755,912.25, - / week. This study aims to analyse the influence of socio-demographic variables, price and income on strategic food for non-poor rural households in Indonesia, and to estimate income and price elasticity of strategic food for non-poor rural households. The data is collected Data from the National Social and Economic Survey for Households (SUSENAS) in 2016. The total data used in the study were 145,390 non-poor rural households. The data taken regarding to it contains zero expenditure then use the demand system by censored model. The empirical result for the specified model for demand functions (LA-AIDS) illustrates that all estimated coefficients agree with a priori theoretical expectations. The expenditure elasticity are positive for rice, beef, shallot, chili, and sugar. Otherwise the expenditure elasticity are negative for corn. According to the values of the cross-price elasticity, among commodities have substitution and complementary relationship are observed.
Keywords: demand system, price elasticity, expenditure elasticity, marginal share expenditure
Sa'diyah AA, Anindita R, Hanani N, Muhaimin AW (2019) The strategic food demand for non poor rural households in Indonesia. Eurasia J Biosci 13: 2197-2202.
© 2019 Sa'diyah et al.
This is an open-access article distributed under the terms of the Creative Commons Attribution License.
(ProQuest: ... denotes formulae omitted.)
INTRODUCTION
Household income is one of the factors that determine the pattern of household consumption of strategic commodities. Sa'diyah et al. (2018) argue that high income households (non-poor) have a consumption pattern that is different from low income (poor) households for strategic commodities. Engel stated that the poorer the household, the more the proportion of income spent to meet food needs (Bourguignon and Chakravarty 2003, Hussain and Hanjra 2004). One indicator to see consumption patterns is share of household expenditure. The size of the share value of household expenditure is determined by the price and the quantity consumed by the household. Non-poor households in the urban area have different consumption patterns compared to non-poor households in the rural area (Table 1). This difference in consumption patterns applies to each type of household.
The difference in consumption patterns between households further illustrates the ability of households to access food and absorb food (Deaton and Dreze 2009,...