ANIMAL FOODS DEMAND IN EAST JAVA, INDONESIA: The Quadratic Almost Ideal Demand System Approach
Abstract
Households in East Java consume protein below the minimum standard of Indonesian national protein adequacy. This study aims to analyze the influence of socio-economic, price and income on animal food demand in East Java. A Quadratic Almost Ideal Demand System (QUAIDS) is employed to estimate price and income  elasticities, also the impact of socio-demographic factors on animal food demand. The research data using Susenas 2016 data from 26,646 households. The results showed that a 1 percent increase in income will increase demand for eggs, chicken, beef, fish and milk by 0.53, 1.23, 1.99, 1.49 and 2.14 percent. Milk is most sensitive to the household income changing and then followed by beef. An increase in the number of household members decreases the demand for milk, fish and chicken. Milk is substitute with eggs and is complementary with chicken, beef, and fish. The increase in income followed by the decrease in egg price, chicken price, fish price and milk price will reduce beef demand by 1.06 percent. Keywords: demand system, animal food, QUAIDSPublished
2018-09-01
Issue
Section
Basic Sciences