Estimating household price and income elasticities for animal derived sources of food using the QUAIDS model: the case of Jakarta, Indonesia
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Keywords

Elasticities
food
household
Indonesia
QUAIDS

How to Cite

Estimating household price and income elasticities for animal derived sources of food using the QUAIDS model: the case of Jakarta, Indonesia. (2023). Tropical Agriculture, 100(4), 317-328. https://doi.org/10.37234/

Abstract

Protein-rich animal sourced foods play a crucial role in improving the quality of human health in Indonesia. This study aims to investigate the impact of price increases on consumption patterns and demand for animal source foods as a source of protein among households in Jakarta, the capital of Indonesia. Data from the 2021 National Socio-Economic Survey were utilised, and the Quadratic Almost Ideal Demand Systems (QUAIDS) model approach was employed to analyse the data. A sample of 3,227 households was used for the analysis. The results reveal that all animal source foods except for eggs are elastic, with beef exhibiting the highest elasticity of demand at 1.71, followed by fish (1.61), poultry (1.39), milk (1.32), and eggs (0.67). Beef and milk were found to be substitute goods, while fish and milk are complementary goods with poultry. Moreover, all animal source foods are identified as luxury goods with income elasticity of beef at 2.20, followed by milk (1.84), poultry (1.44), and fish (1.07). In contrast, eggs are a normal good with an income elasticity of 0.38. These findings suggest that rising prices and income significantly influence the consumption patterns and demand for animal source foods in Jakarta. To make animal source foods a normal good rather than a luxury item, income policies may be more effective than price policies for beef, poultry, and milk. On the other hand, price policies may be more effective than income policies for fish and eggs. These findings can provide important insights into strategies for improving the consumption patterns and demand for animal source foods as a source of protein in Jakarta, Indonesia.

 

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